Waiting for the Weekend

“I don’t think trading strategies are as vulnerable to not working if people know about them, as most traders believe. If what you are doing is right, it will work even if people have a general idea about it. I always say you could publish rules in a newspaper and no one would follow them. The key is consistency and discipline.” – Richard Dennis
As discussed in our latest weekly outlook video the short-term focus is on potential event risk this weekend with developments in North Korea and with Hurricane Irma. Remember that risk happens fast; it doesn’t matter until it does but at that point, the train has usually already left the station. SPX can be your guide but we would also be keeping a close eye on the RUT and action around that 50DMA.

With the BOC out today, USDCAD will clearly be on our radar. After this 10%+ correction, it will be interesting to see if we see any kind of profit taking pre/post the rate statement. Positioning is very short and the moves could be very aggressive either way with action around the 1.25 mark being pivotal.
As discussed, until we get a sustained move into and through the 18/20 area on the VIX we suspect that it’ll be business as usual.
And don’t forget to keep an eye on ZBs, things could get very sporty here too…

As always there is no substitute for real-time/live action; if you are interested in attending a daily 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.

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