Fascinating what one finds out on the internet. For example, I chose Mack the Knife as my weekend market metaphor after taking the photo of shark teeth. Thinking the line “Oh, the shark, babe, has such teeth, dear. And it shows them pearly white,” apropos to the recent market activity, the true meaning of the song blew my mind.
The intention of my Daily’s title is to be a bit tongue-in-cheek, considering the explosive move higher last Thursday.
If you read the rest of the lyrics, the song mentions old MacHeath.
Mack the Knife originates from the Threepenny Opera, an old German piece about a pimp named MacHeath who beats his girls. Whoa.
Resisting the obvious temptation to relate the song to any current events, let’s trade the pimp with the market, the girls with investors and the violence with the recent volatility.
Back to my point, this market has shark’s teeth. And last Thursday, it left no trace of red.
Both Bulls and Bears have had to tread lightly. Sharks sense movement in the water.
As one who teaches and guides hundreds of subscribers about the market and what to trade, would you like to hear what I told them last week about what to expect for this one?
Before I sum up the macro picture, a quick review on last week’s featured trade: crude oil, USO.
USO is holding the calendar range high at 12.93. Oil is in an uptrend. The technical point, 12.00 (area) should hold to keep the uptrend intact. Once USO clears 13.30, the next MAJOR resistance comes in at 15.50. The impact on the market will be interesting for sure. Currently, all the indices are in warning phases. The warning phases are accelerating in momentum with the declining slopes on the 10 and 50 daily moving averages.
The weekly and monthly charts are all still intact. However, the exponential moving averages are not only sloping down, but also proving to be resistance.
That makes the advice relatively simple. Right now, consider last Thursday’s action “window dressing,” until proven otherwise. That means that the Dow, unless it clears and closes next week over 246, is still in trouble.
