We can't ignore the carry trade, but when your pizza delivery man starts talking about the Yen, you have to wonder how many traders are blindly chasing the same indicator. As Granville once said, "If it's obvious, it's obviously wrong", so expect the current inverse relationship to flip on everyone when they least expect it, i.e stocks drop with the Yen or rise with the Yen. In other words, don't forget to offload some stocks when the Yen is falling. Techs rallied on weak semi-conductors and SPX on weak housing. Traders also took note of the high TRINNQ during the session. We do have a do or die Fed meeting coming up folks.
For now, go with the flow, it works. NQ (NDX future) is trading above 38.2% (1776), weekly R1 at 1786.25 is resistance. QQQQ is showing a two day decline in volume so mind your step, especially with the VIX hitting the lower band once again (chart).
Gold holds on to its 50 day moving average (now at 654.30 April contract) and is coiling in a very tight range. An explosive move is coming, one way or the other.
This entry was posted
on Monday, March 19, 2007 at 3/19/2007 07:48:00 PM.
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