Chart of the Day

“Some people are always grumbling because roses have thorns; I am thankful that thorns have roses.” – Alphonse Karr
As we discussed in yesterday’s session, the main development was the cocaine-angel ramp action on USDCNH. It was only a matter of time before someone pointed it out to President Trump and our focus was to position short on USDJPY and USDCHF. Don’t forget to keep an eye on the $SHCOMP and the USDCNH. Remember that the full Trump interview will be out today at 6 AM EST.
Once again, we are going to sound like a broken record but the market is extremely complacent and completely ignoring Geo-political and Geo-economic risk. As you should know, this usually ends with the velocity of move being to the downside; stairs up and elevator down.
Another thing we have been focused on in the sessions is how we are using Netflix as our overall barometer for current market action and the topping process. Our base-case remains that there is a good chance that some kind of a top is already in and that the NQ is just the last man standing and being a bit difficult. If indeed we are going to correct across the board, NFLX was the tell and if not already short on one of those two gap downs, the play was to sell the 50back of the latest bigger gap-down. More on this in today’s session…
No change to what we discussed in our latest Weekly Outlook Video, and as always, keep an eye on the Twitter Feed for updated charts and commentary.
Wishing you a great day ahead.

Chart of the Day

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.” – Winston S. Churchill
Dip buyers were at it again yesterday as the shenanigans continue on yen and gold. As we have been discussing and not to sound like a broken record, the markets are being extremely complacent here. This does not mean that they can’t trade higher but it means that the real ‘velocity of move’ risk is to the downside. Having said that, even if our base case still remains that we should trade sideways to heavy into the end of the month, we are very much aware of the fact that there is a distinct possibility of a melt-up squeeze, especially in the NQ as it hovers around all time highs.
Today we will discuss and review the Netflix chart in detail once again and discuss how it will likely be key in understanding hot strong yesterday’s moves really were and if indeed they can get traction.
No change to what we discussed in our latest Weekly Outlook Video, and as always, keep an eye on the Twitter Feed for updated charts and commentary.

Note for active 50Scouts members: *make sure you read out latest update* and keep an eye on your inbox for a free pass to Friday’s daily webinar session (make sure to check your spam folder 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.
Wishing you a great day ahead.

Chart of the Day

“We live in a fantasy world, a world of illusion. The great task in life is to find reality.” – Iris Murdoch
No change to what we discussed in our latest Weekly Outlook Video, and as always, keep an eye on the Twitter Feed for updated charts and commentary.
All and only about Netflix today. Apart from repeatedly banging the drum on the fact that markets are being extremely complacent, we have been highlighting Netflix action into and post earning as a potential key catalyst for market action into the end of the month and a traditionally weaker period for equities. Bears have a real chance to get some traction and they have to keep pressure on today post the likely big gap down open. The story is developing and it’s all about follow-through and a potential domino effect.

Note for active 50Scouts members: *make sure you read out latest update* and keep an eye on your inbox for a free pass to Friday’s daily webinar session (make sure to check your spam folder 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.
Wishing you a great day ahead.