Day nine for the Zweig. I appear to be confusing everyone as I am running the day number ahead of the count. The point – is Monday’s close seals the deal, so we only have two more closes to get that 61.5 and to put a very bullish Zweig thrust into the books. I love these counts as it always brings in new people that have never heard of this signal and a chance to share on the the best long-term positioning signals designed. Let’s go NYSE A/D line!
Around the Globe
Europe as of 6:42am EDT
Today’s Economic News:
Great data out of Japan. We have a fragile rally going in Europe that the USA is wanting to hold through the morning news cycles. The Chicago PMI will be a big driver coming out at 9:42 for the peekers.
Quote of the Day:
The conventional view serves to protect us from the painful job of thinking.
–John Kenneth Galbraith
Current Breadth Readings: (click here to see all our breadth charts)
We are going to feature the Zweig today as our breadth. We need 61.5 and are so close. A nice close today should get it. I know, I said that yesterday. I was very disappointed. Monday is day 10 and that will seal the fate on this signal.
ES SP500 Futures Comments:
You can short the 1431 area as the neckline. I feel a little bit better today than yesterday about our short area. We most likely won’t get that super-duper melt up today, but if we do, it will be just icing on the cake for the bulls.
If some softness comes in, look around 1407 for a hold. This is a rumors’ market, which we have seen during these 6/7 handle moves caused by the fools on the hill. It is not easy to trade, and on what time of the day the jabber comes in has a major effect on how we fall as liquidity is not even all day long. So be careful if you are exposed during the mid-day sessions. The good news is that the news seem to be reverting nicely, in other words, counter-trading the news has been good for a few dollars.
We remain bullish with our eyes on a Zweig prize. Regardless of how that turns out, this move is much stronger than given credit for and there are plenty of signs around that the bulls are gathering for something special over the next 3 to 6 months.
US Dollar DX Futures Comments:
Let’s go Euro. Let’s drop Dollar. Oops, the scale got dropped this AM on the dollar but we know the drill, we want 80 to break. That didn’t seem possible just three days ago, now it is looking really good.
TLT Twenty Year Bond ETF Comments:
The bulls need to see it today. A run up in interest rates and a run down in the TLT. We want our 122.50 area.
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