Ratio Roundup

My indicator was down today, but not broken. One sector is in critical danger.

The financial sector made a new O today, indicating an increasingly volatile and bearish environment.

The buywrite/index ratio is rising (bearish), but it approaching a falling 10sma (bullish).

This breakout in the HUI/GOLD is bullish for gold stocks, so I'm buying the dip.

Long/short commodities vs long commodities looks attractive here, but keep a short leash.

Risk appetite has yet to return as treasuries still outperform junk.

Banks look ready to fall again. Tomorrow will be crazy, and though we may see a rally, I think the market is ready to roll over. Hopefully gold will pullback, but if the dollar can't find support by Thursday, I'll be rolling into shiny yellow bricks and yen.

Ratios to Reason

The Buywrite Index has been crushing Buy 'N' Hold strategies for months.

Will the BXM:SPX ratio find resistance @ the 10sma?

Gold miners haven't lost much ground to gold, which I interpret as a bullish signal.

Long LSC and short commodities is one of the best strategies I can see. Up almost 20% since this mention on Sunday.

If I could short JNK I'd give this pair a shot too. Treasuries are still holding strong, but boy does it feel bubbly.

Just because Treasuries are going vertical, doesn't mean they won't go to the moon. Long the 20 year and short the shiny yellow stuff is still paying off, and could continue to do so for months.

Defense wins the game, and over trading will kill the most skilled speculator. I'm watching with amusement and trading vicariously through new found Twitter friends. Good luck out there, but I suspect Brian Shannon has the right idea.

Fuck the Fucking Fuckers

My Internet was down all day, no trading, no shorting, nothing. I swear there is a conspiracy afoot to prevent me from trading on these awesome days. I missed the Geithner rally a few weeks back under the same circumstances.

Anyhow, the markets look ready to churn lower now that volume has come back in. The bulls have one more day to prove themselves, otherwise this market is going down faster than a 5 dollar whore.

SKF is my favorite, and I wouldn't be surprised to see it at 300 in a few days if the bears maintain control tomorrow. Capital preservation and keen risk management remain the name of the game. TLT, FXY and UUP are still the strongest trades, and have the greatest psychological aversion amongst small investors. Nevertheless, GLD is pulling into potential support, so look for range bound trading, or the resumption of a new downtrend.

Doubling Up On Gold

Deutsche Bank is offering leveraged and inverse Gold ETN's DGP (+2x), DZZ (-2x), DGX (-1x). This is very exciting, but also quite scary. Looking at DB in the charts gives me little faith in the banks debt, but so long as the market believes in these awesome debt instruments, I will certainly go along for the ride. DGP is trading @ 25, so if gold moves to 2000, it should trade around 75.
Bond yields continue to move lower as BSV, TLT and TIP are trading at all time highs. Still no sign of a major financial collapse as bonds continue to offer safety.