“The scales have fallen from my eyes” No – I am not getting all...

“The scales have fallen from my eyes”

No – I am not getting all religious, but I was reminded of this biblical line yesterday when I realised that the missing link in trying to work out these markets was the Yuan. Since the beginning of December the Yuan has been moving up against the US dollar.

How it is all going to work out, I still have absolutely no idea, but I just think this something we have to give more attention to.

With New York closed over night we are just left with their futures to set the pace. As I mentioned in my notes yesterday, I think this week will end badly and nothing has happened at this stage to make me change my mind.

But what has been really fabulous is that my target of 5900 on the XJO has been met – and slightly exceeded, even if only for a couple of hours. I think we will see at least a 50% retracement of this latest move up perhaps as far down as 5600, and then we can re-think the situation.

As mentioned yesterday, as happy as I am to see the little miners having sharp moves up, please be careful about being caught on some of the spikes – they can prove painful.