Bonds Dollar Metals Markets

Good morning everyone, S&P futures are up 9 points right now, and we may open above the downtrend line. Could we get 4 straight days of selling in the bonds. Its no coincidence that stocks are rallying. I have been writing for a few days now that bonds are in a topping pattern. Looks like risk maybe back on.

Greek lawmakers are expected to vote today and tomorrow on the austerity measures, which must be passed in order to receive the next payment of its bailout. If the government does not pass these measures, Greece could default on its debt, possibly sparking a Europe-wide crisis and potential credit market freeze. Looks like the markets are betting that there wont be a default.

Meanwhile yesterday demonstrators gathered in central Athens at the start of a 48-hour strike to protest the measures. According to the Case-Shiller home-price index home prices in major U.S.cities gained for the first time in eight months. The index dipped 0.1 percent on a non-seasonally adjusted basis while the index gained 0.7 percent after a seasonal adjustment. So the actual numbers dropped but after adjusting showed a gain.

Tuesday's session opened with a significant gap higher and then proceeded to run higher from wire to wire with only minor pullbacks along the way. But the SPX netted a gain of a mere four points after the end of the first hour while still managing to close at the highs.For the SPX Index there were 427 components advancing and 50 components declining. On the NYSE 3,163 issues were traded with 2,457 advancing issues and 605 retreating issues, a ratio of 4.06 to one advancing. There were 75 new highs and 23 new lows. The five day moving average of New Highs is 54 while the five day moving average of New Lows is 34 and the ten day moving average of Net Advancing is 270. The Net Advancing data indicates a bullish trend.

Tuesday’s volume was less than Monday's volume as volume continues to slide lower since last Thursday. There is really nothing significant that can be gained from examining our intraday volume pattern. But the advancing volume was spectacular. Breadth Indicators have turned bullish looking but the McClellan Oscillator has now moved firmly into overbought territory.


Look at the chart to the right, I had pointed out that the bonds were in a topping formation and now they are rolling over. I'm looking for this rally to continue as long as the bonds fall. Bonds have a lot of room to fall and yields to rise.

Dollar is also looking like it wants to take a break. And all of this is short-term bullish for our beloved PM's other commodities. Just looking at these charts and knowing full well its too early to get excited but maybe we are out of risk off trade for a while. Fingers on the trigger.

I wanted to highlight the dates for options expiration in Silver, they have pointed to turnarounds in Silver prices just take a look at the rallies. Things are lining up well for Silver hoping it breaks out above the trend line

Rest of the charts are self explanatory. Everything commodity related is trying to find a bottom or reason to rally QE3 announcement coming soon. You know the Fed gives JPM and GS the heads up so they can position themselves the right way. So lets see if we get a call out of one of those mafia families.