Higher Highs, Higher Lows Since Monday Morning 1/6/21

[DrStool]

When an index makes higher highs and higher lows, that's an uptrend, which is what we've had since Monday. And Monday's drop only resulted in a single lower low, relative to the previous uptrend. It's not yet apparent whether a lower high has been set. So I guess, we're in limbo from that slightly longer perspective.  But in terms of the 5 day cycle, the direction is still up, despite the overnight weakness this morning. 

To signal a downturn in the 5 day cycle we'd need to see a drop that breaks the trend channel now around 3690.

There's no 5 day cycle projection yet. A 2-3 day cycle projection of 3740 hasn't been reached yet. There's an apparent downtrend line now at 3727 heading for 3720 as of the NY open at 9:30. They'd need to clear that to have a shot at hitting the projection.

Failure to break that line would leave the matter unresolved, unless and until they break the uptrend line headed for 3700 at the NY open. 

 

The 10 year yield broke out this morning. It's now at 1.01 decisively breakng the high of 0.97. It might not stick, but it confirms that the uptrend that began in August and has seen the yield more than double, remains in force. It also completes a lovely saucer base. 

 

I'm working on a Liquidity Trader update. I wanted to post yesterday but glad I wasn't able. Now I can address this. It's at least interesting that the Fed hasn't been able to suppress the relentless rise in yields since the summer despite $200 billion a month in QE. 

 

[DrStool]

I love these Wall Street crybabies moaning that stocks will fall 10% if Dems control the Senate.  

Of course, there's zero basis in fact for that. Zero basis historically either. 

Meanwhile, the EUR will be $1.25 by tonight. 

Hey buddy, can you spare a dime. 

[DrStool]

Itty bitty break, but still a higher low for now. 

[DrStool]

Double bottom looks formidable on the 30 minute bars. 

 

[DrStool]

Lacking are strong positive divergences on the 30 minute oscillators. Suggests a retest or lower low are more likely than straight up from here. 

[DrStool]

1.03 on the 10 year now. 

[DrStool]

Now That We’re Through the Month-end QE Shortage

[DrStool]

1.04

[DrStool]

Rainy night in Georgia. 

[potatohead]

4 minutes ago, DrStool said:

Rainy night in Georgia. 

"the night the lights went out in Georgia"

[DrStool]

 

[DrStool]

5 day cycle projection 3775, 

[DrStool]

I sure hope this is the turn in the USD. 

[DrStool]

Maybe having a legitimate functioning government will make a difference. 

[DrStool]

As opposed to this John Wayne Gacy clown show we've had for the last 4 years.