2nd largest one year rally in 35-years, opportunity at hand

 whatwouldyoudohere2ndbiggest35yearsdec19

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This asset has experienced a big move over the past year, the 2nd largest one year move in several decades.

This assets rally has taken it up to falling resistance that first started in 2000, the move has taken momentum to a level not seen it 15-years and its hitting a Fibonacci 161% Fibonacci extension level, while creating a bearish wick this week at these key levels. Sentiment finds itself at the same levels as 2009, nearly 75% on one side of this trade. 

Unusual performance can hatch unusual opportunities. Do you feel in time this could turn into an opportunity? What do you feel should be done here?

We welcome your thoughts/opinions on this situation. If you would like to know the answer to this quiz, we would be happy to let you know what this is and what action we are taking at this time.

Share your thoughts or request the answer to this quiz by sending an email to services@kimblechartingsolutions.com and we will get you the answer as soon as we can.

Have a wonderful weekend, Chris

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Interest rates could rise sharply from here says, Joe Friday

 joefridaycriticalyieldtestdec19

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One year ago this week, the Power of the Pattern suggested interest rates were due for a BIG CHANGE and members purchased TLT!

Patterns suggested a interest rate decline/bond rally was due, while 100% of economist were predicting rates would do the opposite. (see post here)  The S&P is having a good year (up 13%), anyone surprised that TLT is up over 50% more (20%)? Well, that's now all in the past, what about going forward?

Let me be perfectly clear on this point....There is not doubt long-term yields remain inside of a multi-decade falling channel and if yields break support here, bonds will continue to do well as bond players would suggest deflationary pressure are still in the cards (which is taking place at this time)

Why could yields rise at this time? See above - (1) The 10-year yield has experienced one of the largest 12-month rate of changes in a few decades. (2) Yields are testing support of a 2-year rising channel. (3) Yields could be forming a bullish inverse head & shoulders pattern. (4) Market Vane reported recently bond bulls stood at 75%.

Joe Friday says, "Yields could rise sharply if support holds here, due to patterns and sentiment conditions."

Full disclosure...Members have no Govt bond position at this time.

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Crude Oil creates large bearish wick yesterday, another today?

 crudeoil6percentbearishwickatresistancedec18

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The Power of the Pattern shared that the most important commodity in the planet (Crude Oil) could fall to at least $70, this was when it was trading above $90. (See post here).

Crude reached the $70 level and didn't even pause, falling much further in the $50's. 

Yesterday Crude Oil attempted a rally and ran into a short-term resistance line and created one of the larger one day bearish wicks it has experienced in a while. This has not happened over the past few months, while Crude is experienced the second largest one year decline in the past 40 years! (see chart here) 

IMHO, Crude needs to find a low soon or its impact could be felt on a global macro basis. 

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