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Don't Get Beared Up Because of Yesterday 4/5/23


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That pullback was probably just the 5 day cycle down phase, with the cycle low at yesterday's low, tested this morning. The ES, 24 hour S&P futures, only need to be above 4105 at mid day today to break the mild downtrend and indicate a new 5 day cycle up phase. 

On the other hand, if they manage an hourly close below 4085, that would complete a nice little top pattern. The conventional measured move implication would then be 4035. That, in turn would break the 8 day uptrend channel. In view of the US Treasury pumping $55 billion in cash into dealer, investor, and other accounts this week, I'd have to give the benefit of the doubt to the bullish case. 

-pocz

More later. 

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If the 10 year yield closes below 3.25, that would complete a top 6 months in the making. The measured move target would be 2.40. 

Hard to believe, Harry. 

So on the other hand, if this level holds, and they get it above 3.60, then this 3 month pattern leans toward being a consolidation before a breakout to much higher levels. 

Macro Liquidity Says No Way Jerray!

image.png

 

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TD Becomes Biggest Bank Short With $3.7 Billion on the Line

In recent weeks, short sellers have upped their bearish bets against Toronto-Dominion Bank , and now have roughly $3.7 billion on the line vis-à-vis Canada’s second-largest lender, according to an analysis by S3 Partners. That’s the most among financial institutions globally and puts TD ahead of the likes of France’s BNP Paribas SA and Bank of America Corp.

Merger arb, Schwab stake, Canada housing woes seen as drivers

 

add this to the list of known unknowns.....great report yesterday, Lee

 

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19 minutes ago, potatohead said:

TD Becomes Biggest Bank Short With $3.7 Billion on the Line

In recent weeks, short sellers have upped their bearish bets against Toronto-Dominion Bank , and now have roughly $3.7 billion on the line vis-à-vis Canada’s second-largest lender, according to an analysis by S3 Partners. That’s the most among financial institutions globally and puts TD ahead of the likes of France’s BNP Paribas SA and Bank of America Corp.

Merger arb, Schwab stake, Canada housing woes seen as drivers

 

add this to the list of known unknowns.....great report yesterday, Lee

 

They bet against the Canadien housing market - which is in a monster bubble - and "short TD" is the vehicle...

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1 hour ago, WTF said:

NVDA gaps down... AAAAAAAAIIIIIIIIIIIIIIiiiiiiiiiiii.......🖕

Couldn't hold 275 eh?  Whodathunkit.

TCG

oh...and...

You've got precious metals dangling in the air here.  in the SLV I do believe know 22.50 has to hold.  In the GLD...I don't like the way it looks right here.  It needed to make an attempt at 192 and then go on to 200.  If it can't hold in the air...as long as it stays above 180...you're good.  If not...well, you already know. 

With all of the pent up energy in the precious metals complex...if its going to break...it will be in gaps.

I'm sitting this one out...

I'll add this...

566914930_SLVtakes22.50-April42023.thumb.jpg.a8e8c21d09f50c1548d3bf56e9a763ae.jpg

So.  Why 22.50?

Let's go back to the SLV topping pattern from 2011 and add a red line to sub-divide the formation.

1027162025_SLV2011-April42023.jpg.eb6201f7746c3ec92210e7e4f0c78722.jpg

Back then...I said the same thing at 32.50.

Now...let's add a chart of the pandemic crash in the SLV as well as our current situation.

1628440559_SLVCurrentWorkingChart-April42023.thumb.jpg.1ad32251f934d28690e35ee155d6823b.jpg

Perhaps...now you can see why I said...it has to hold 22.50.  If it doesn't.  It's on a quick trip downtown.

Hence...the Bear Market Instruction Manual...just in case.

190013959_TheChartwithNoName-April042023.thumb.jpg.df13c01ea478a18a378f604b1703ebc7.jpg

Of course...I could be wrong.  If I am.  The GLD will gap through 192.00 and 200.00.   IF it doesn't hold those levels?  Once it's back below 190.  The coffin lid is shut.

338545134_TwinPeaksCurrent-April32023.thumb.jpg.21d4aa51608607cf628e1e4031ca77cb.jpg

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REGIONAL BANKS STILL OVERVALUED

This is a process that will take time.

Where are the Bank short ETF's when you need them?????

Instead we have all these META ETF's and now I presume a new rash of AI ETF's (can keep the new hot narrative down!!!!)

The FED will have to keep printing to plug the deposit gap.

Everyone will eventually end up in the "Safe House" of the RRP.

 

 

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Since I'm here...I'm going to park the following charts below.  Encapsulated are my thoughts in regards to the ^XOI and the GLD coupled with the long term view of the SPX.   As I've said before, I operate under the premise that all markets are connected. 

Maybe you can get something from them...or not.

Best,

TCG

1557624744_GLDWeeklyChart-April42023.thumb.jpg.9377453b17e0ba0f4131a66bd758fa3d.jpg

1496032035_XOIWeeklyvsGLDDaily-April42023.thumb.jpg.9b6f0040263e19c00e9071cf20128545.jpg

578038767_ThePertinentLegintheXOIvsGLDDaily-April42023.thumb.jpg.f4fd2afcc33ef76f57a73e46710e6512.jpg

487153040_TheGreatResetUPDATED-April42023.thumb.jpg.d38d05af215839a20d872b79d260420e.jpg

The Original...

427585090_TheGreatResetORIGINAL-April42023.thumb.jpg.6a7cccce5cffdb20ceaa8879dd3d0a03.jpg

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1 hour ago, WTF said:

Thanks TCG... the charts are much appreciated.

No problem FTW...

A trip to the magnet first is the most bullish scenario!

Just as the example that was given with the SLV...here is the pattern in the GLD.  There are several variations, but the current pattern is the best the GLD has to offer...and right now it's in between three different variations while it's sitting up here in the air.  I've tried to give my interpretation for each variation I expect...is possible.

1635383875_GLDDailyChart-April52023.thumb.jpg.ce071432b9a0592cddb2e349841f29c4.jpg

It's not all bad...

It could get very bullish here real quick...and I've given the parameters that I'm watching.  IF you start to gap up from here, rest assured you're probably not coming back.

Although...that is precisely the scenario I didn't want to see.  I'll keep it quick, but if you go back to the low in late 2015?  If you break out here...you're going into a fifth wave blow off immediately.  While you can easily tack on a 1000...quickly.  That isn't good for the market long term...at best...it will flip you into a long sideways consolidation and at worse.  There's your blow off...it's all over.  

I'd prefer to take the slow path and I cannot quantify this market breaking out when  silver doesn't seem ready.  Therefore...I'm sitting and watching.  If the bus leaves the station without me.  There's always another bus coming along.  I'm the buy low/sell high type.  Not the buy high/sell higher type.  Too much risk..

We're going to know soon enough...we're on the edge of...something.

From my perspective.  Across ALL markets...I'd feel more comfortable if we had another burst or two to the upside....although, I see several indices that look quite tired.

Always remember...

One days does not a new trend make.   Turns...need to be confirmed on volume.

Pretend you're from Missouri.  Show me...

Money Talks, Bullshit Walks.

Never be in a rush...Patience.

ON the flipside...

TCG

oh...and...

Very quickly.  The 'best example' against our current setup...

1524540898_PatternVariation-April52023.thumb.jpg.9982c67aa4563e0adf0851cb73949aa8.jpg

To conclude...

Please recall:  Just...Double It.  Isn't invalidated until the GLD pops 190 on volume.

1604142154_Just...DoubleIt.-March172023.thumb.jpg.5d506763e31276af2ede0d072f0c0c6c.jpg

 

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