Con-tango

The yellow submarine

The Yellow Submarine. Courtesy of Howie Green.

I’m loving this post already. So many fond memories…

First, the music,

Then, the lyrics, courtesy of sing365.com…

[…]

We all live in a yellow submarine,
Yellow submarine, yellow submarine,
We all live in a yellow submarine,
Yellow submarine, yellow submarine,

weird sounds

As we live a life of ease,
Everyone of us has all we need (has all we need)
Sky of blue (sky of blue) and sea of green (sea of green)
In our yellow (in our yellow) submarine (submarine. Blaha)

We all live in a yellow submarine,
Yellow submarine, yellow submarine,
We all live in a yellow submarine,
Yellow submarine, yellow submarine,

[…]

So appropriate for the subject at hand, the case of global market liquidity.

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Captain Morgan’s pirates

Morgan’s Rum. Courtesy of Don Maitz.

Continuing with my previous post, a salient feature which has allowed Morgan’s pirate traders to make trillions of USD is the fact that they have shown their abilities to navigate a deep sea of liquidity, with low volatility winds.

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How to become a billionaire

 

Japanese Yen.
Courtesy of Bank of Japan Currency Museum.
 

Ok,
so I mistakenly thought the US real GDP for 2006 was going to be lower,
2.5 %, and it surprised with a high of 3.4 %. Then, what was it that
compensated the loss of growth in the US housing slowdown? From the latest BEA report and
looking at the fine print (Table 2), we find that the relevant items
with contributions above the 2005 GDP are:

• The export of goods with a
  0.24 % contribution,
• government expenditures (mostly at the state
  level) with 0.23 %,
• and a surprising cleanup in US inventories to the
  tone of 0.56 % …

…Christmas sales went well… and the states helped with some extra spending.

But, looking around for an excuse to my… blindness, I ran into the whopping sums that the US financial sector is harvesting around the world
–which I found a lot more interesting.

Continue reading…

I chickened out…

CL H7. Chart courtesy of Ensign.

Prices should continue their rally…
But, enough is enough… I’m out.
The jiggling around 13:00 hrs. hurt my account. Fortunately, from 13:30 on, I didn’t miss a beat…

And all in a… Friday.

11:28 stopped out

That’s it, I’m out –it’s bouncing…

CL H7. Chart courtesy of Ensign.

11:17 I’m in

Sold @ $57.26, due to failure of the 15 min $57.35 upwards breakout, the $57.10 low is acting like a magnet… Buy Stop @$57.40 –or at a failed failure…

CL H7. Chart courtesy of Ensign.

A Friday start

The daily chart is showing CL with a strong leg into higher prices. Apparently, the test of the $51 low held at the $54 price level. Yesterday, prices failed to breach the $58.20 high; so, a $57.10 price furthering the failure would be an immediate sell.

RSI, Williams R and CCI confirm the strong long bias. In particular, MACD is about to breach the 0 level, a significant threshold level. It is likely to bounce from it; but, if it doesn’t… It’ll signal a strong
CL H7. Chart courtesy of Ensign.continuation of the uptrend.

Continue reading…