Although the dollar has plummeted due to sky rocketing stock prices, this index is continuing to diverge very strongly. We are now getting into an area where I am getting tempted to take a swing at the long side. I do need more than what we have in this chart, but I am watching this very closely now. Stocks are now at a key time zone for a potential short term turn. If that were to occur, it is likely the dollar would rise since their inverse relationship is very tightly woven right now.
Many individual currencies have burst out upward, then stalled the last day or so. Since we are also at some cyclical and seasonal spots for them, I am hesitant to get aggressively long there. However, let's be honest, shorting almost any market has been a quick way to ruin in the last several months. As a result, I am keeping my powder dry and trying to be patient. This is not easy for me, I need to generate a good amount of money to live each month. Even with that being the case, dumb trades are dumb trades, and shorts have been darn near impossible in most markets other than on a day trading basis. There will be a time when this changes, just as it did when everything was a short and longs were impossible many months back.
For now I am staying flat in the currencies, but looking for longs in the dollar and shorts in the other currencies. I have no trades for tomorrow here.
Here is one market that does go it's own way, Natural Gas. This does appear to be setup for a short entry here if Wednesdays low gets taken out. We are trading higher tonight and this has a long way to travel to fill this, so maybe this is not a likely trade but it is worth pointing out.
I have really been grinding trying to find a trade in the stock indexes, and I just do not see one. We did move down slightly today as I said I thought might happen. We did not move anywhere near that megaphone patterns entry spot. I do not see a buy or sell pattern for tomorrow, or see one for Friday no matter what happens tomorrow.
I want to get back to Crude Oil. This market has been on a wild ride. I had called for it to decline, and it fell out of bed just a day or two later. Now we have sprung back up very strongly on the international turmoil stories. I noticed something tonight that is very unusual. The next chart is that of Unleaded Gas, the middle child of the three in this complex.
The POIV indicator is showing a huge amount of divergence, a classic 3 lower peaks formation with three higher highs. This is exceptionally rare, I do not recall the last time I saw this. I know there is an over abundance of bullishness on the energy complex, yet this tells us the professionals are not accumulating longs at all. This is a market to watch for a sell signal for a large move down. it may well be that the next short term signal is a buy I do not know. However, this is a market speaking very loudly here and it is time to be on guard for a move that surprises the public here.
I had to post this a a different than normal time due to other business conflicts. For those who check in from overseas, go down one post to see the one you would normally view for today since this is now the second post today. It is really an advance post for tomorrow.
Robbins has been behind in their updates of the contest. We are up about 20% at the moment, so I do not know where that leaves up but it is certainly on pace for a good year. Remember if you missed the post it is under PNJ Advisors. I will be launching our web site shortly so you might want to check in for it in a month or so.