Disclaimer- The following is presented for entertainment purposes only. Do not attempt to trade using this data, and I recommend that you not trade futures at all.
The markets are working out which way they are going to go in the future. I think that we’re at a critical juncture; it is unusual for gold, stocks, and bonds to all fall together. Typically they aren’t well correlated, but this week they’ve moved in near unison in direction, if not magnitude. This week has seen a dramatic decline in the hypothetical portfolio. If you look at the longer term chart you can see a similar move in late 2012. I think the markets are “confused” by the Fed rate hike that is expected next week. If the Fed raises rates and stops propping up the market we’ll likely see a return to “bad” news moving the markets lower, and “good” news moving the markets higher. Recently is seems like any “bad” news prompts a rally as speculators expect the Fed to ease and salve the market pain. My guess is we’re seeing the beginning of a return to this traditional type of market.
Today we have sell signals in Sugar and Fed Funds rate futures. The system is already out of those positions. There are no new buy signals.