pay attention or pay the offer» Eurodollars

The Surge

chris — Wed, 17 Sep 2008 03:43:40 +0000

No, not that surge. The first chart show the tremendous surge in put/call option volume today. That surge is commensurate with a market extreme. The second chart shows the put/call ratio which is high enough to mark a low, though I’d prefer a more extreme reading. However, here I think the volume is more important than the ratio itself.

click chart to enlarge

Yesterdays update, Watch Rates, said to look for a reversal in interest rates as the sign of a stock market bottom. Rate markets across the board reversed dramatically. The chart below shows the eurodollar futures which managed to form a bearish range-bust reversal on the weekly chart – and it’s only Tuesday!

click chart to enlarge

The 135 minute eMini chart shows the tick cycle-trap divergence confirmed on today’s last bar. I’m skeptical as to how much actual upside can be acheived in this financial climate here. But it’s safe to say a bottom of at least a short duration has been reached. Perhaps some type of sideways bear flag will form in the 1180-1240 range as stocks work off their indigestion from the turmoil of recent weeks.

click chart to enlarge

Weekly Eurodollar Sell

chris — Wed, 16 Apr 2008 16:13:25 +0000

The weekly eurodollar futures chart has penetrated it’s sell net-line. The chart shows the buy net-line penetrations that occurred in July and October, leading to substantially higher prices. Combined with other weakening indicators, the major eurodollar rally of the past nine months appears to be over.

click chart to enlarge

Eurodollars – the big picture

chris — Sun, 16 Mar 2008 16:16:10 +0000

Eurodollars continue in their strong, long-term uptrend. The charts shows the extreme utility of our custom indicators. The arrows point to the three bullish events that occured in a two-week span in July 20007, an RSI divergence, a net-line buy, and a cycle-trap turn, all clearly announcing the beginning of this big move.

click to enlarge