You May Want to Sell

Fed meeting today, non-event and truthfully who really gives a hoot on what they had to say. We had Gold down, oh what about $35+ on a Fed day, are you really surprised. Notice how we did trade just shy of 1440 and buying came in to take it above 1460, however that move up seems to be fading in Asia. Remember we have the ECB tomorrow and the big BS job number on Friday, lots of volatility coming your way!

Now for the Title of this post-You May Want To Sell- Chinese numbers as of late are starting to grab the attention of some. The GDP out of China a couple of weeks back got some cautious and now the release of their Purchasers Manufacturing Index which was released last night only came out slightly above 50 and this has traders questioning the global growth theme. Tonight you will get 3 charts from me to show how traders are feeling to start out this month. Let us start with Oil

Just a couple of days ago, Oil was on its way above 95 and now look at what has happened and how ugly that chart has turned. We are on the verge of being back below 90 and could a possible test of $85 be in the works? It looks likely to my trading eyes!

Next take a look at Copper- Does this look like it wants to go higher?

It does NOT, in my opinion, it looks like it may break $3.00 and that would not be a sign of a healthy global economy my friends. And that leaves me to the next chart, the Dow Jones

I pointed out the top I saw in the Dollar last week, and if that chart above does not implicate a short-term top, I do not not know how to identify a Top in any market. That is simply not true, it would only strengthen my case at how badly rigged this sick game has become!

Shorting from these levels in stocks may be a decent strategy, just do not be afraid to take profits and play the bounces-the bounces will come from the Invisible Hand and who knows that Hand may not let the markets go down from here. Keep an eye on Oil and Copper, also watch the Aussie & Cad for clues. I would not be trading the Cad or Aussie from the long side at this point!

Good Night
Martin