4:39 am. PST. The capital continues to flow out of bonds this start the new year as anticipated last Friday. We can see that TLT is down this morning. I will watch to see if I have to exit my TLT short position or whether I can continue to hold to a new multi-month low. There will be resistance at 118.60 and support at 118.16.

As capital continues to flow out of bonds, it looks like it is going into stocks. This morning the Dow mini futures are up about 148 points and it looks like we will very likely surpass the 20,000 psychological barrier this week, possibly today. This could be an ending wave of a minute v degree as my XLF chart suggests, but certainly not the completion of the bull market. I will probably look to see whether I have to exit my FAS long position today.

The dollar is also having a really nice rally  with the index futures up more than a dollar this morning! This helps to confirm that I probably have the right wave count as posted earlier with EUO and UUP. I think this is an ending-minute-wave-v move.

Considering the dollar futures are up 1.19% this morning as of this writing, gold and silver futures are faring quite well in comparison. /GC and /SI are only down slightly and I think it is probably because this is an ending move and traders are anticipating another bounce in the precious metals. I might look to buy mining stocks for that bounce once the dollar completes its minute wave v quite possibly today or tomorrow.

You can see /gc finding support at the 1148.70 support level this morning.

The EUO etf, which is the ultra-short Euro, has the same pattern as the U.S. dollar. I see we have waves (iv)-(v), (4)-(5), 4-5 left. The negative divergence is mounting with each new high warning of an impending top.

Question: What is the best broker to use for trading options if I live in Europe and wish to trade options on U.S. stocks?

Answer: I really do not know. I know of a Canadian who uses eSignal to trade U.S. stocks. I would suggest calling up the big name brokers that have offices in Europe and the U.S. first and asking if you can do it through them. Also doing an internet search might help.

Question: Do you think the dollar will continue higher along the same angle?

Answer: I have posted two counts on the dollar, one with the high having taken place last week, and an alternative with the high being a minute wave b of wave iv. Judging by the futures trading right now, it appears that the dollar could have another minute wave v up this coming week to complete a wave 3. I will post an updated chart tomorrow.