Tuesday, May 28, 2013

Failure Day

We were not enamored with Friday's low volume grinder higher but we also respected the patterned instincts of the masses to follow through higher.  Sure enough, the visual high-odds pattern played out with a push higher -- and then a failure.

In our 1st slide today we feature the bonds and their downside breakout.  Additionally, they decoupled from the indexes today with a trend down day, despite the indexes finishing near lows.  I don't recall seeing this pattern in quite awhile.

If this bond trend continues, and rates finally ratchet higher, this market is toast.  It's going to a plunge back into reality.






Intra-day screen shots, showcasing the "perfect" entries!   




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