Analysis for the week!
Overall:
There is, sadly, no divergence between any of the major yields - neither foreign or domestic (see attachments). There was divergence on the foreign yields early in the month, but that has run its course by now (and explains the large bearish move seen in the USDX - investors switched to bonds from currency, as yields were rising).
We have nothing on the COT either - it's remained pretty flat. We're getting close to making a new yearly low on the Cable, though. That'll be good confirmation for a short, especially since we just hit a major resistance level.
USDX:
I am fully expecting the USDX to move dorn to the 80.00 level before continuing to move bullishly. It's an OTE level, psychological level, and it lines up pretty well with previous support.
Cable:
So, we finally hit the 1.6750 level. Emphasis on FINALLY. I am fully expecting bearish action for at least a little while as price corrects from that level.
Price yesterday bounced at the highs made on Jan 2nd (1.6600, coincidentally my entry for the day yesterday!), and is probably going to retrace into an OTE at around 1.6680 or so to make the high of the week (it is Tuesday, after all!) before heading lower into Friday.
Fiber:
I am also expecting lower prices going into Friday here - we just reached an OTE level (1.3770) yesterday, and are still in a retracement from the high made at 1.3900.
Overall: Looking to short the Cable going into tonight, tomorrow, and Thursday nights!