The Brains Trust-2019, page-482

That was a very telling session overnight. I mentioned in my notes yesterday that the SPX looked like it was trying to go back up and fill a few gaps it left last October when all the markets fell apart so in the latest session it pushed higher into this area and promptly turned lower. But it was the Trannies (Dow Jones Transportation Index) that was the most telling.

And don't mention the banks!!! In fact running through the nine sections that make up the New York market, it is hard to find anything to be happy about.

Have been watching VIX closely and it certainly turned last night and the ultra VIX futures, UVXY, looked even more emphatic.

Can't go past another favourite of mine JNK - which as you can easily understand is the questionable end of the bond market. That was definitely a top last night.

I have mentioned that I had a very important little window of about ten days and I anticipated that the markets might have some surprises for us in this little time zone and after last night, I think this is certainly going to be the case.

I was a bit disappointed that gold didn't do better in this less than exciting environment. Both platinum and palladium were quite a bit stronger which should help sentiment.

Our market struggled again yesterday with the same favourites holding the fort. I mentioned on Monday that it looked like the hourly chart of the XJO could be forming a rather nasty looking little head and shoulders top pattern. The past couple of days of trading appear to have done little more than expand the size of the pattern.

And just to make my day, the steaming coal price that has been threatening to break downside for some weeks, managed to achieve that little feat last night.

So all in all a far from encouraging start to the day.