Tuesday, November 8, 2011

Market Monday

Today I wanted to start with oil, which I haven't covered in a bit.  This market is starting to look very strong.  Prices are in a clear uptrend and have been since the beginning of October.  Prices have moved through the 10, 20 50 and 200 day EMA.  The shorter EMAs are moving higher with the 10 crossing the 200 recently.  Prices became entangled with the 200 day EMA a week and a half ago, but are now above this EMA.  Bottom line: this chart is looking bullish.

Copper formed a double bottom in October and has since moved higher.  However, the shorter EMAs are now moving higher at a less steep angle.  Prices have also become entangled with all the EMAs and have been moving sideways for the last week printing very small bars. While oil is showing an anticipation of recovery, copper is still waiting for further evidence.

Although the junk bond market dropped sharply a bit ago, it has since rebounded.  Prices are now over the 200 day EMA and the shorter EMAs have all started to move higher with the 10 crossing over the 200.

The corporate bond market has also caught a strong bid, advancing strongly over the last few weeks.  All the EMAs are moving higher and prices have moved through important resistance levels.  Also note that volume is slightly higher over the last week or so. The strength of the latest rally indicates a rush into safety.