“Many people don’t focus enough on execution. If you make a commitment to get something done, you need to follow through on that commitment.” – Kenneth Chenault
We still have a lot of event/tweet risk our of Washington but let’s focus on the charts.
As most will have noticed, yesterday’s theme was > bearish reversals across the board. We would caution bears to rely too much simply of the fact that we have had red engulfing candles; you can easily look back and see how these tend to resolve and especially in recent bull market runs. Our preference is to focus on these factoring in current context and location. Also, remember that a lot of big names still have to report.
As already discussed, we feel that one of the best reads/guides for what is developing in the markets remains the action in Netflix. Here were our thoughts into and post the earnings release. Again, we are using this as the cleanest control point for our thesis.
Most of you probably expected NQ to be the chart of the day but as already discussed, Russell is and has been a lot more interesting to us. No change to our base-case that we have already put in some kind of a top in June and that January highs attract to the downside.
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.