from this mornings reading:
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"Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729
The session is quite young but also quite bearish for the entire Big Four: stocks, bonds, currencies and commodities. Stocks as measured by the Dow Jones ae 140 lower, bonds that dropped a whopping 2 full points and few ticks yesterday are down another full point and 23 ticks today. All major currencies are lower except the dollar which is King and on the plus by 46 points. And commodities as gauged by the CRB Index is in the red by 196 points. It is one ugly day!
The weakness is no surprise. Yesterday on Inside Futures I posted a brief piece entitled, Punt On First Down and one paragraph read, “Based on what I am witnessing this morning, there is not a market anywhere I would carry into tomorrow. Not a one. In fact, some of my more sensitive technical work is suggesting aggressive traders and investors can sell anything today on hopes that everything will be lower again tomorrow.”
The final paragraph stated, “My old high school football team had so little confidence that oftentimes we would punt on first down. Yes, that is how little confidence we had. We would punt on first down. And that is how I feel about today. If you are bullish anything…anything the wise thing to do is to punt!
Bonds are a leading indicator market for stocks as well as for commodities. This morning, bonds are under heavy selling pressure and at a new, four month low. The weakness with bonds has the down 140 points lower. My rule of thumb that I have mentioned time and again on Inside Futures is this: a close in the Dow of 125 points or more lower on a Friday, bodes exceptionally ill for the following week.
There is nary a market on the plus except for the juice that comes from an orange, few cattle contracts and soybean oil. Almost without exception, all other markets, stocks, bonds, all the major currencies and the CRB Index are lower to sharply lower. The day is breathtakingly bearish and with bonds into a new 4 month low and stocks on the cusp of being in a world of hurt, the rest of the day and all next week could be more of the same.
For today, avoid the long side of any market. Sell rallies as there should be follow thru weakness next week. However, the only two markets I would probe on the short side here and now and press them going into the close are stocks, shares, equities the Dow and the oinkers. Sell them hard and look for a great deal of weakness all next week.
The time is 9:07 a.m. Chicago
http://insidefutures.com/article/178492 ... 20Day.html
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that he posted this so early in the day and his prior day was correct is interesting.
for my part I cam very glad to see the break.
My "line in the sand" was 2141 (Sept contract) and we convincing smashed this in the ES
(I switch to Dec on Monday)