The Iranian Front
Since the futures opened up on a gap Sunday night, I don’t think that the market is worried about Iran. The futures rolled over an hour later, but that’s probably just a continuation of the sell-off. If the futes were worried about Iran, they would have made a large gap down and then kept right on going. Having said that, I still don’t like the smell of this Iran situation. President Obama knew about the new nuclear facility for a long time, and didn’t make it public until after the Iranians did. Here is Obama’s explanation:
“Mr. Obama said he had withheld making the intelligence public for months because it “is very important in these kind of high-stakes situations to make sure the intelligence is right…””
Or maybe he was “saving” it in order to get maximum impact from the news as part of a propaganda offensive to sell the war to the American people. The fact that Obama hastily began his offensive shortly after the Iranians informed the IAEA of the facility and stole his thunder makes me think that a strike on Iran was already in the works until the Iranians noticed the red laser dot on their forehead and fessed up.
IYT Gap Support
Last week, I had the 14.75 level marked on my XLF chart because that was where the September 16th gap opened. The XLF moved back-and-forth through 14.75 on Thursday and Friday, and you could just feel the support crumbling away. This week, I will be watching the IYT. It has a gap at 68.57 from September 10th, and it may be crumbling. That level is also just a few pennies above the IYT’s August peak. If the transports close the gap and move below, it will likely be bad news for the rest of the market.
On September 20th, I wrote:
“Trillions injected; zero jobs created. Kind of scary when you think about it…”
Six days later AEP wrote:
“If you look at the sheer scale of global stimulus this year, what shocks is how little has been achieved.”
Note to global intelligentsia: you are merely a human botnet which I program with memes. Resistance is futile!