Let’s make this simple.
I’m watching a few things:
- Banks/Financials – they always lead us UP and they always lead us DOWN. They are approaching major targets. BUT WAIT – the European Financials just BLEW THREW 2 projections and a retracement level. (see below) – are they going to vacuum the banks/financials in the US w/ them … if they do, we ain’t going down folks. HOWEVER, if the banks/financials start down, then you might think of getting VERY conservative. We’ll find out in a few days or so, I suspect.
- XLP/NYA – held for now. That’s ‘bearish’ for stocks but if we lose that 13 year support line then these stocks could take off higher. DO NOT BE LONG THE STOCKS WHEN THE PATTERN COMPLETES LOWER ..for now, see what this important ratio does.
- I’m also watching the strength in Junk Bonds – junk bonds go up – it’s game on folks and they have yet to break down.
- At the end of this post, take note of the Japanese Yen … sure looks like it wants to get stronger and remember the last time THAT happened?
Last – might want to go load up on some coffee. Coffee futures are rolling thru a long term projection.
Bring on the Charts!
forgot to label, the chart below is Copper Futures
Unfortunately you can’t really “load up” on coffee. Even green coffee (the stuff I buy and roast myself) is only good at best up to 1 year if stored properly. Roasting your own will save a lot of money though 🙂