BALANCE

Everything we like to learn, find or experience lies within us.

All outward things or ideas are just an illusion, a play of our untamed minds.

Keeping the one, maintaining concentration and being centered all the time brings one a step closer to his true realization.

Forget the delusion that someone know something and you need to learn from somebody.

Just look inwards and learn from the immense source of knowledge and wisdom that is found in the true nature.

Reflect and keep the balance and things get accomplished without the slightest effort.

TRADING PATTERNS

US Dollar Index (DX) reversal based on the AB=CD pattern

USDX Weekly chart suggest we have a completed AB=CD pattern that implies a reversal into USD strength with immediate target 79-80.

Stock Market Momentum is topping

My previous target 2950 on Shanghai Composite (http://constellation1976.blogspot.com/2010/10/shanghai-composite-momentum-persists.html) has been met and actually exceeded. Think momentum is Topping here and I expect a rise in Volatility.

S&P still manages to squeeze higher but Momentum is waning.

VIX is like we live in bliss and economy is alright. My assumption is hang there for a while and Volatility spikes higher as some 'fundamental' data or other theme surfaces again. Be it QE2 disappointment, another debt problem or political tension - there is always something to blame for the price action. If anyone cares.

USD/JPY and the 20-MA

The 20-MA works like a Clockwork, especially on the USD/JPY.

Pay special attention to those long shadows on the Candles.

S&P at Resistance - Reversal after QE disappointment?

What we have here?

Candle pattern says Shooting star followed by a Hammer - do we have a signal - I assume at least caution here but we gotta hear what Mr. Bernanke has to tell markets at this critical junction.

10Y Note /30Y Bond Divergence - Signs of Weakness

10Y Note made Higher High however 30Y Bond might be signalling weakening in the trend of the Fixed Income market which is evident in the Momentum readings.

I could not know if bond vigilantes are rejecting owning a 30Y paper at the current low yields or the FED has more power in suppressing the short to medium term (2-10Y) yields however I take this DIVERGENCE as a sign of pending trend weakness.