wednesday brainstorming

1. So far the correction goes as expected – SPX still on its way to test the 1330 level and NDX has already tested the 2360 area (gap) but we have to wait another 24h to see if the market is done to the downside. Stockmarkets are not done yet but very soon as sentiment remains at extreme bullish levels.

Rydex Nova/Ursa Ratio

print Print |  1 Month |  3 Month |  6 Months |  1 Year
Date NAV Adjusted N/U Ratio
05/03 0.706
05/02 0.696
04/29 0.675
04/28 0.669
04/27 0.667
04/26 0.628
04/25 0.624
04/21 0.624
04/20 0.635
04/19 0.546
04/18 0.601
04/15 0.657
04/14 0.669
04/13 0.665
04/12 0.666
04/11 0.674
04/08 0.676
04/07 0.689
04/06 0.683
04/05 0.670

Silver made a 20% correction from the top as we were far above all Bollingers even on monthly basis after retesting the Hunt high at 49.50 – but we are not done medium to long term we will see higher highs for Gold and silver but for the next weeks the highs are in as many commodities do falter right now.

excerpt

Services ISM Plummets: Just 2.8 Points Away From Contraction; Concerns About Fuel And Commodity Costs, And Economic Uncertainty

Submitted by Tyler Durden on 05/04/2011 10:13 -0400

And scene: as predicted, the US economy is now in free fall (even with QE2 still having two more months to go), validated by today’s Services ISM (recall that the US economy is based on “services”, not a manufacturing) which plunged from 57.5 to 52.8, taking out consensus of 57.5, and “growing” at the lowest rate since August 2010. As a reminder a number south of 50 means “contraction.” From the report: “The NMI registered 52.8 percent in April, 4.5 percentage points lower than the 57.3 percent registered in March, and indicating continued growth at a slower rate in the non-manufacturing sector. The Non-Manufacturing Business Activity Index decreased 6 percentage points to 53.7 percent, reflecting growth for the 21st consecutive month, but at a slower rate than in March. The New Orders Index decreased substantially by 11.4 percentage points to 52.7 percent. The Employment Index decreased 1.8 percentage points to 51.9 percent, indicating growth in employment for the eighth consecutive month, but at a slower rate. The Prices Index decreased 2 percentage points to 70.1 percent, indicating that prices increased at a slightly slower rate in April when compared to March. According to the NMI, 17 non-manufacturing industries reported growth in April. Respondents’ comments are mixed about overall business conditions; however, they are mostly positive. Respondents’ comments also indicate concern over rising fuel costs, commodity costs and the lingering uncertainty about the economy.” Virtually every index declined with New Orders plummeting from 64.1 to 52.7 –the biggest drop in history, excepts for Supplier Deliveries (this will certainly drop next month), and Imports.

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~ by behindthematrix on May 4, 2011.

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