How do you trade this mess???

    Posted by zach06 on 30th of Nov 2011 at 07:12 am

    Euro Down   Dollar up.     Yaun down   silver down.    HG down    gold flat     Yet EQUITIES UP   over yesterdays Pivot....   

    MESS!!

    Don't know for sure how much it will neutralize the European situation, but I am increasing longer term China exposure at minimum.  Looks like a good R/R to me.

    I would think some of

    Posted by kalinm on 30th of Nov 2011 at 07:56 am

    I would think some of this rate cut has been priced in already, so it will be interesting to see how this plays out after the initial knee jerk wears off.  From what I've read, the real estate bubble in China dwarfs the bubble that was in the US in 2007.  Bernanke threw everything that he had at the market pre-crash and it still crashed.

    Silver looks like it wants

    Posted by kalinm on 30th of Nov 2011 at 07:25 am

    Silver looks like it wants to break down from that bear flag pattern very soon.  I still contend that the $USD is showing a massive cup and handle pattern -- maybe the silver and dollar patterns are related.  Who knows.  $SPX will gap up right to the 13ema and 50 day MA level of 1205.

    Cobra makes a good point

    Posted by kalinm on 30th of Nov 2011 at 07:21 am

    Cobra makes a good point about this action.  Look at daily SPY chart -- it shows a much different story than the early Oct bottom.  Huge gaps up with not much follow through.  I will say that the $DAX looks decent like it wants to rally to the 200 day MA.

    therein why I "don't" read

    Posted by marketguy on 30th of Nov 2011 at 08:34 am

    therein why I "don't" read Cobra anymore....he's actually been a fantastic contrarian indicator the last couple of months...whenever his tag line says lower low ahead (like now) we rocket....tonight's headline will be higher high ahead (that will mark the top)....

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