“Yesterday I was clever, so I wanted to change the world. Today I am wise, so I am changing myself.” – Rumi
The market tends to be very good teacher but only for those that a willing to listen and patient enough to sit through enough cycles. We have tried to be very clear on what we think is trying to shape up and at what point we are in the current rotation. As always, we have updated our thoughts in the latest Weely Outlook Video.
In terms of recent action, we really can’t complain. We are getting some two-sided action across the board and as traders, this is all we can ask for. Bonds and Gold continue to be the tell and VIX has finally woken up. We continue to expect choppy action and a press into the high teens, ideally into the 20s.
In terms of equities we have repeatedly warned about the action on IWM and XLF, so instead of posting those charts again, we thought is would be interesting to draw your attention to GS which is what we will be looking at for clues now.
In closing, last but definitely not least, don’t forget to keep an eye on DXY and this key support that is being front-run; we would not be surprised if Monday marked a pause of this USD selling, at least until the back end of the week.
If you are interested in attending a morning call into NY with a more detailed live discussion on all the charts and ideas we highlight/review in the outlook video and here on the blog, you should check out our Daily Webinar Group.