Review: GWm means green Williams Oscillator and RWm mean red Williams Oscillator.
Earlier I said the market will fall due to gravity not fed intervention through rate rise. Rates won’t go up as inflation will come off by the Dec Fed Mtg and of course bad economy will result in lower inflation.
From Mish, odds of rate rise keep dropping….
The Christmas rally will come from
- realization there is no rate rise
2. retail prices will drop significantly due to record margins …sparking Dec uptick in industrial demand and pmi
It may take until Dec 16 Fed Meeting to get the rally going, however. The Fed will still be making statements about possible rate rise at the next meeting causing SPY to drop in November. BUT as with Dec 2014, SPY can quickly ‘gap up’ +1.5% after the Fed Meeting when the expected rate rise does not materialize. After this Christmas rally and drop in TLT, TLT will be engaged most likely Jan 4.
ASIDE:
When FXC gets OS, is also a great indicator to buy TLT. See mid-Jan 2014, Jan 2015, and mid-July 2015.
VIX is also down setting up a good condition for SPY rally.
SPY has gone up BUT oil did not rise enough to cause TLT to drop into red! So wait for TLT to go red….RWm before GWm
In 2008, TLT also had to go red before green…
Credit Flow Investor 