ES: closed at 1773 on the night before FOMC. Big news tomorrow. If there is no taper then level above on daily charts is 1798/1804 (old vpoc areas). Taper tantrum = lower to 1753/60. Price dropped there this week (overnight). Previous balance area.
December 4: 2013 Price probing down. A test of 1765 area may be on the cards. – we got that test this week. Buyers defending key levels with decent volume on pullbacks:
1788/92 was key – On March contract this is the line in sand for me – level on Dec is 1782/86
Next chart shows 1782/86. Above: VPOCs 1798/1806. Below: VPOC 1756, Microcomposite VA = 1745/60
Next chart shows weekly range. Above here is potential 1830/45 (or 55 etc)… else 1750 – 1700/20.
These are range extensions higher and lower using current monthly Hi-Lo and 1,3,6 mth ranges.
Gold: so manipulated. Buyers of the double/triple/hobbling-along-the bottom. If this does not hold its more pain for Gold bugs. Volume looks to be declining. Bloomberg : “Gold Declines as Demand Dwindles for U.S. Inflation Hedge. Metals markets need to see some inflation before they can rally because they’ve lost their appeal as an inflation hedge”
EURUSD: It moved up slower this time (unlike the ridiculous algo 150 pip move earlier this year that got hammered). It seems too many people Euro-haters were in the wrong side of that trade again.
My life improved a lot since I stopped to read Zerohedge. Scrolling through 6 pages to find a link I came across so much negativity. Betting against an up market because you want to see it burn is not a good investment philosophy, especially when you are getting killed buying gold.
Anyway, this is an interesting explanation for EURUSD strength. The New “Widowmaker” Trade, And The Reasons Behind It.
Bund: tested inside are of negative development that it fell through. It is getting sold there but is managing to grind up. A bit like ES and Euro ?