Friday, October 16, 2009

WTI Short Squeeze Close

That was a nice clean 5 wave move up yesterday into the 78.17 high. The final acceleration occurring at the 2:10 pm margin change for daytraders.  Call me a conspiracy theorist but I can 't help thinking that the flash trading folks have discovered CME Globex WTI orders. And it could be I'm just late to the party on that. If true, it obviously would make a very fine case for using the floor, or Clearport.

In any event the 78.17 high represents a move up from 58.32, that if complete, will equal exactly 50% of the preceding ABC up: 33.55 to 73.23. And that will be a complete series of 3 ABC's up from 32.40, the max allowable.

The USD finally looks to have a bottom in place after a classic declining wedge 5th. The Yen led the way noted Mon.   USD: Ready for Take Off?   Followed by Gold selling mid week. Very unusual with the dollar still weakening at that point.
And finally, the SP squeezed up into 1095 overnight , for C= .78 of the A and nearly a 50% retrace of the whole move down at 47%. Also curiously, 1098 was the opening on Oct 6 2008 , the day the SP dumped to 1009 and the likely candidate for the 3 of 3 of 3 moment of recognition title.

SEATBELTS  EVEYBODY.

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