NFTRH159 Summary...

I am going to try to find emergency internet access, but all locations I have checked so far are still out, with projected return of power still days away. We have a generator, but I have little faith in Comcast to pull a rabbit out of the hat.

Thus, a quick summary of #159, section by section:

Opening segment:

Greed is indeed returning. SPX has exceeded critical resistance but is in need of a pullback from over bought. There is support at 1260, but critical support for bulls is 1220.

Sentiment among the dumb money (AAII especially) is rising with the market and thus, this market is not climbing a wall of worry. Insiders are selling the rally as dumb money buys it. Still, SPX has loaded 1360 as its target pending a hold of critical support.

Longer term charts paint this as a bear market rally until proven otherwise.

Global Markets

World Leaders (NYL) have already rebounded to near the limits of a 'bear rally' and above 6000 would begin to open a discussion of 'new cyclical bull'.

China 25 (FXI) rebounded from strong support (2008 cluster) and is now near strong resistance.
Emerging Markets same thing.

German DAX targets 7000 off of bottoming pattern. Can pull back to support @ 6000 first.

Commodities

Copper in need of correction, but ultimately targets 3.90 a lb. WTIC targets 104 off of a 'W' bottom. Commod indexes have significant resistance however.

Precious Metals

HUI target 629 off daily 'W' bottom pattern. Traders should become cautious there. GLDX is A-B-Cing up toward gap @ 15. Can pullback a bit first.

GDXJ still under H&S neckline. Looks to joing SLW, SIL, etc. in negating H&S. I still do not like this ETF due to holdings and silver content.

Gold steady Eddy, but can easily continue to consolidate vs. many commodities and currencies. This being a counter trend bull relief rally and all.

HUI-Gold ratio still indicates VALUE in quality gold stocks. Esp. when considered along with the 'REAL' price of gold.

Warning: Gold-Silver ratio is still in an uptrend and ABOVE important support. As long as this remains the case, it is a bearish divergence to broad markets, commodities and yes, ironically, potentially gold stocks and silver.

Wrap Up

30 year yield back into the 'continuum'. Acute deflation fears averted for the moment. 10 year yield formed a nice bottom pattern. Must hold 2.2% to indicate further bull activity.

GSR especially, indicates that all of what is going on is counter trend. Until it is broken down, it bearishly diverges the rally. A correction in broads is needed and one wonders if the Fed may prompt it by pretending to be stewards of sound policy this week. Supports are noted and must hold for extended bull activity toward or into new year. This is the preferred scenario for now.

NOTE: Wife just suggested friends closer to Boston who may have power. If so, will bring laptop and send from there. Meanwhile, I wanted to get this quickie out.

Regards, Gary

Edit (4:28) NFTRH159 was indeed sent to subscribers this morning, thanks to a friend's kind assistance. Blog readers, the gobbleDegook above is just a very simple machine gun style summary done in about 2 minutes. Consider the real thing my friends. It's got some good perspective in there. Oh, but wait until I get full internet access back. ;-)