Another no volume Trading day, today to the downside. While the DAX buyers celebrated the New Year with printing the index to “ridiculous” levels, the MIB and IBEX shorts are cheering today. Italian rates are once again soaring, Italian banks imploding, while the Euro takes out new lows. Let’s step back for a while, and watch the charts. We have reached resistance levels, all on Santa trading with very light volumes.
The real action starts next week. Below important charts to watch.
As people are waking up from Christmas, trading is rather muted. Renewed “fears” over Italy are doing the rounds, but trading is of course very thin. Beklow are some key levels on various European indices. As we can see, we should be breaking out of the “consolidation” sooner than later.
Some short term chart levels below. As we suggested a week ago “markets will consolidate going into the last days of trading”. Not really unexpected, but could offer some good vol plays, as people soon will start puking vol, as juniors on the desks now all chant ”dude, the market is not moving”.
Another boring pre Christmas day. People waiting for the Santa rally are disappointed. As we wrote yesterday, “markets will be trading in a consolidation”. Forget both Santa rallies, or major sell offs for the time being. Market is still “stuck” in a range, at least for the short term. Until we break out, and form a new trend, sit tight and trade accordingly, if you trade at all.
Short term levels below.
While the Market is awaiting holiday season, there is little point in trading it. Market will probably consolidate during the last days of trading. Time well spent is going through charts, and thinking about the “big picture” for next year. Many have lost a lot of money during the wild swings this year. One thing many tend to forget though, is the fact the US markets are pretty much flat. It has been the Euromezz year, and will continue so. Let’s see if the Euro Zone problems spill over to the US. Meanwhile some long term trend to watch for;
Markets are trading rather weak today again, with poor volumes. With the European Titanic sinking slowly, the wise people are already in the life boat. Note how all futures are back to pre “central planners” coordinated action. With holiday season, one should not get over exited, as volumes and liquidity diminsh by the day. Charts below:
The news flashes out of Europe are getting increasingly pathetic. The single most “disturbing” factor to the bear case is the fact everybody is getting very bearish and calling the collapse before Christmas, while all loaded up on gold….
Below 30 day charts worth reviewing.
With central planners and politicians running the show, this market is getting increasingly pathetic. As we wrote yesterday, “Don’t get over exited though as we live in mean reversion nirvana at the moment”. The market lacks the momentum to break either way at the moment. Nobody is in control, as news flow out of Europe still flip flopping this market.
Note how all the charts below reached the support level created with the central banks move we saw a while ago. Those levels will provide further support, as we still live in a mean reversion heaven. Charts below;