All Bets Off

On Tuesday, Japan reversed the change in money supply to reduce money supply relative to last Thursday and plans a further reduction on Wednesday. Market isn't responding much to this morning's PPI figure. The CPI will be announced tomorrow. Lots of corporate earnings reports this week too. The stochastic oscillator is still below 20 - it increased a little yesterday - at this level the presumption is to still be short. But yesterday the oscillator increased a little and to remain constant today prices pretty much need to rise.... movement of the oscillator tends to be pretty smooth and so this suggest higher prices today. A very big rally is needed to get above 20 still - about 3.5%. So I am again going tentatively long this morning but not holding overnight positions until the trend is clear.