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Greetings,
Today, Germany, via their legal system, decided that squandering the hard earned savings of their worker bees on bailing out the 'Club Med' socialists south of the border (PIIGS) was legal and necessary. Necessary in the context of preventing any serious haircuts to the hard core gambling banksters, and legal in order to preserve the authority and control of the ruling oligarchy.
Once again, the world has been saved from financial Armageddon by the puppet masters and their magic printing press. Markets around the globe rallied furiously for a second day celebrating the new reality that the greatest Ponzi Scheme in history has been deemed 'legal' by the Overlords of commerce.
In the ancient times, 25 years ago, the bond markets determined a reasonable rate of interest based upon the issuers ability to REPAY the debt. Today, with $TRILLION liabilities, everybody knows that the principal can never be repaid. That's a given. So, today, interest rates are based upon the issuer's ability to ROLL-OVER (extend) the debt.
The EXTEND and PRETEND game has been the critical lifeline supporting the fiat currency scheme since 1995. If the bond markets get a little worried then the Central Bankers step in and 'COERCE' rates in the proper direction. Politicians around the globe love THE BERNANKE and the US model. Like the Borg say ..."RESISTANCE IS FUTILE"
TRADING TRANSLATION FOR ES FUTURES
So what does all of this mean in terms of trading? Price action against the Critical Range parameters from JS Services gives us a visible clue on the changing sentiment in the market. Overnight price action (early Wednesday morning before the US Open) took prices above the UP resistance level. In our Introductory Video from the last newsletter we mentioned that about, roughly, 25% of the time ...prices break out beyond the critical range.
This morning a consensus of opinion was established at around 9:40 A.M. Eastern Time(US). We got a 'CLASSIC' Higher Pivot Low (HPL) BUY SIGNAL. That signal was right out of our training manual as it set up perfectly. More importantly, it formed above the UP level.
Significantly, that BUY SET UP defined the tone for the rest of the day. The market players created a definitive footprint stating emphatically that the bulls were in control and the only way to play the game was to be long for the rest of the session. THE UP LINE BECAME THE CRITICAL SUPPORT. Prices ground higher all day long all the way to 1200 from 1177.75.
Coming into the session the market was in a BEAR TREND CORRECTION STATE. The CORRECTION part of that statement suggests that we may see some strong moves higher ..all the way up to the R level at 1198. A subtle but significant component in the market structure was the MC value. Today it was -5. A few days ago it was -8.
The MC value told us that the selling pressure was getting weaker. We are in a Bear Trend CORRECTIVE STATE and the MC Value is getting weaker.
Right off the bat we get a HIGHER PIVOT LOW BUY SIGNAL ON Kwik*POP from the UP Line.
WHO HAS CONTROL OF THE MARKET ... THE BULLS OR THE BEARS?
What is the MC VALUE. What does it tell us about the market? Please watch this video from John Slazas of JS Services. It will be a critical piece of the puzzle that matches the Kwik*POP signal to BUY at 9:40 this morning. If you bought that HIGHER PIVOT LOW and stayed long ... you made some serious money today.
Click on this link .. http://www.kwikpop.com/files/MC%20VALUE.htm
Regards,
WDH
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