Got a double sell signal on the 90-min RSI, and a very nice weakening trend:

Prophet.net (I’m going to miss these guys — they were bought by Investools and they are shutting down the site)

When the short-term gets hazy, remember the big picture.
The drop so far (about 6% in 12 days on a closing basis, 9% in 13 days intraday):

Source: Prophet.net
Here are the conditions I am watching: RSI on the daily scale is now oversold. However, DSI bullishness has dropped from near 90% to the 30s, which still leaves a [...]

Let’s start with the Wall Street line, courtesy of Bloomberg this week:
Demand will be strong next year as consumption gains in China, the world’s biggest metal user, said Andrew Karsh, a co- manager of funds for the Credit Suisse Total Commodity Return Strategy team, which oversees about $4.4 billion.
“Industrial metals are a favorite of ours,” Karsh [...]

As of early this AM, we have a trendline break on the hourly chart. Still none on the daily or monthly, but as we saw last week after a similar trendline break, this market is capable of cracking with little warning. This is a 1-month view of February gold futures. Last night’s high is the [...]

While Americans were on holiday, the last couple of days have seen some exciting market action. Stock indexes around the world declined roughly 3-8%, “safe” US and German government bonds rallied, and the dollar plunged to a new low then rebounded very strongly. Gold made a new all-time dollar high at $1196 as the dollar [...]

The tide is turning. We now have a strong, impulsive decline off the highs, confirmed by a rise in the dollar and declines in the metals, energy, and grains. Yes, we’ve seen this before (in June, August and September), but the sustained manic conditions (put/call ratio, DSI, etc) that we saw in mid-September and mid-October [...]

Frequent readers know that I watch sentiment and put a lot of stock in Investor’s Intelligence and Daily Sentiment Index surveys, and that when extremes in sentiment match with extremes in price, it is as good a trade as the market ever provides. Well, we have 3% dollar bulls today. The dollar is going to [...]

Everywhere I look this morning I see spikes in risk assets: copper, silver, oil, the pound, stocks, credit, etc.  Copper and oil are moving tick for tick in lock step at the moment. These really are all the same market.
I recently read about a strategy whereby a trader would start “trading campaigns” 25k to risk [...]

Robert Prechter said back in February that some aspects of this bounce would resemble the euphoria of the all-time top in equities. Well, when I looked at the market today and saw that Amazon has rocketed up to its 2000 and 2007 peaks (albeit on pathetic and waning volume this go-around) and sports a 60+ [...]

Today’s action (equity and commodity sell-offs through key levels, major bond and dollar rallies) confirms once again that the dollar is still king and that deflation is the name of the game.
The action since March can be summed up as (1) a dead-cat bounce from oversold conditions in equities, (2) a replay of early 2008’s [...]