Super Mario about to impact this pattern opportunity?

supermarioimpactthisassetjan22

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As the world awaits what Super Mario's actions will be in regards to interest rates in 30 minutes. I thought I would share the conditions of a key asset in the states, that seems to have some influence on the worlds financial stage too.

Current price/pattern conditions....This asset has done well of late, pushing much higher over the past year, taking it back near its all-time highs. Could that be a triple top? Investors like the action of this asset, as nearly 80% are bullish at this time, according to Sentiment Trader. The rally has momentum hitting levels seldom seen in the past 10-years. 

Could an important "kiss of resistance" be taking place with extremes in momentum and sentiment? 

What action would you take with this Power of the Pattern Opportunity? Feel free to share your thoughts on what action you would take here by sending and email to services@kimblechartingsolutions.com

I will be suggesting specific action to members today on this pattern, if you would like to know what this asset is and what action we will be taking, send an email to us and we will send an complimentary sneak peak at what this asset is and how members will be playing this pattern.

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See more of our research and services....HERE

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King Dollar and Euro could change trends near here

 dollareurohotcoldextremes

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Established current trends....U.S. Dollar Up (Hot), Euro Down (Cold)

The upward trend in the US$/Yen has it facing a cluster of resistance at (1), monthly momentum is the highest in 40-years and bullish sentiment towards the US$ at 91%, according to Sentiment Trader.

The downward trend in the Euro has it facing potential falling channel support, with weekly momentum the lowest level in 15-years and bullish sentiment toward the Euro at 14%.

No doubt the solid current trend in the US$ is up, the world continues to look at the US$ as the tallest of the seven dwarfs. No doubt the current trend in the Euro is down and the world see's plenty of troubles in Euro land.

Some times trends have counter trend rallies or they reverse trend. The current situation with both currencies presents a potential for short-term reversals in these prices zones. Our strategy is called TB&M, which stands for "Tops, Bottoms and No Middles" as we attempt to find key turning/inflection points.

The odds for a reversal here might have moved up a little of late as Gold & Silver are both reflecting relative strength against the US$ of late. See metals strength (HERE)

The Power of the Pattern, when Silver was trading at $28, shared that it could fall almost 50% more, to the $15 zone and metals and premium members would look to be a buyer near those levels. Even though the US$ has been strong of late, Silver is gaining strength against the US$ right now too!

A few weeks upward move in the metals hasn't proven a thing at this time, I do really like some things I am seeing in this complex and if the the US$ would turn weak here, metals could really be attractive to buyers!!!

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Kimble Charting Solutions

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Staples/Discretionary diverging and breaking resistance

 staplesdiscretionarybreakoutjan20

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The Staples/Discretionary ratio has been in a steady downtrend since 2009, which reflects investors have been comfortable with risk, pushing more money towards discretionary holdings (risk on trade). A falling resistance line has been in play for the past few years, until recently.

Of late the ratio is breaking above resistance, reflecting that money flows now are turning towards Staples (risk off trade). 

Back in 2007 the ratio started heading sharply higher, when it did, the risk off trade was the place to be.

At this time the ratio is NOT looking like a "hockey stick pattern" as it did back in 2007.  If it starts turning sharply higher and the S&P 500 breaks weekly support line (1), it would appear that the risk off trade is on.

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