Stay Nimble

“You don’t know who’s swimming naked until the tide goes out” – Warren Buffett
Things are getting interesting across the board with more and more risk building not only out of Washington but also out of the Tech space now.
The easiest way to look at the indices is to let the 50/100/200DMAs guide you. We have been discussing these dynamics for quite some time and you can catch up with the latest Weekly Outlook Video. Furthermore, remember to keep an eye on our Twitter feed for updated intraday charts. We have recently posted a lot of updates, especially in relation to the tech space.
The biggest short-term event risk remains FOMC tomorrow. However, we want to keep on stressing that there is still a lot of Geo-political risk in the background and we feel that the market is being very complacent not only about the Muller investigation but also about the probable upcoming China tariffs and possible snow-ball effect of this whole Facebook debacle. Remember that from time-to-time, the unthinkable does happen.
Just a final word of caution: the selling in Tech yesterday was incredibly paced and orderly. A lot of participants have never really seen or experienced sustained selling pressure > believe it or not, it does exist, it does happen and it can be far more painful the the grind highers if you are stuck on the wrong side. Naturally, most participants are going to be convinced that the dip will be bought and that we are headed back to ATH. Please keep an open mind and let price action guide: Don’t believe anything ‘has’ to happen and be prepared for whatever the markets decide to do.
If you want to keep things simple, just focus on action in the Nasdaq:
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.
Wishing you a great day ahead.

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