The Golden Sunrise
The essential morning read for investors!
Golden Sunrise is the Golden Surveyor’s broad-based market and world view.
Written daily 4am-7am by markets information specialist GS John!
Today’s Golden Sunrise
Thursday, May 20, 2010
Hours of daily research consolidated for you
Orlando Magic Market?
Prior to entering the series with the Boston Celtics to see determine who would be the Eastern division representative to play for the NBA title, the Orlando Magic had been the best team in professional for the last 2 months of the season and won their first two playoff round without a loss. The Magic crushed the Atlanta Hawks in 4 games by record-setting margins.
The Magic have lost the first two games to Boston and quickly become the Tragic, will never win another game, have players that can’t play and coaches that can’t coach.
In a short period of time, the “bull market”, the recovery, the gaining strength and momentum of the economy have all come apart and the gloom will have to rise to approach doom.
This is a daily chart of the NYSE Composite—it has shattered the 50 dma, broken the important 200 and has little means of visible support. The lower shadow on yesterday’s candle did show some buyers coming in but nothing to take much comfort in. The charts on the website for subscribers are crystal clear-these are a little hard to read but running a Fib retracement from the Feb 5th lows to the recent highs show we come under a number of important Fib levels. If the .786 does not hold, we are looking at 1 and 1.27 which are much farther down. The .786 at 6864 was undercut yesterday, will likely be tested today or tomorrow and needs to hold here. Much as I like the Magic, they may not win a game against the Celtics so this level may not hold either.
Asia had a very negative set of sessions, Europe is decidedly down and US futures and have declined sharply for neutral earlier this morning.
The S&P on a weekly chart..doesn’t look too serious.
Market breadth yesterday was halitosis-higher volume decline, up-down ratios very negative.
- Big money coming out of the recent leaders.
- Gold, commodities crushed.
- Vix levels remaining high
- The short ratio dropped for the 13th consecutive session to t0 9.73 so it is not shorts tanking this market. The ratio was near 14 a month ago. This is a huge decline.
- Dick Bove bullish on financials. Meredith Whitney telling the truth about them.
The ETF for crude oil: gold, copper, commodities, many markets very similar
Back to the S&P: The .786 is 108.75 so that will be the next key level to watch. This key metric touched 1100, the 200dma.
Gold got smashed with everything else yesterday: Open interest dropped to 587k contracts from 601 as positions closed.
This chart is the gold juniors etc-these react the most dramatically to moves in the gold price. Just for comparison, I have included the trend lines for the NDX 100 and the Russell 2000 proxied via QQQQ and IWM ETFs. Interesting.
The Euro yesterday and the past few days:
The Euro this morning: this is what I expect will happen in this trading day…
This is astonishing volatility as the hedgies and big funds are rush in and out of doors in crowded theaters.
What was not crowded was Yankee Stadium last night from the 7th inning on as the Tampa Bay Rays handed the no-name Yankees their patoots. Never seen the Bronx Bombers with a rosters of so many guys I never heard of.
Their will certainly be weakness to buy-the question is from where. And the Magic will win another game, might not be this season though (sell in May and go away?).
JohnR
Goldensurveyor.com
