“But the real object of the Game is not the money, it is the playing of the Game itself. For the true players, you could take all the trophies away and substitute plastic beads or whale’s teeth; as long as there is a way to keep score, they will play.” – George Goodman (aka Adam Smith), “The Money Game”
Netflix is a great example of what we are currently witnessing; a weakening market that is still fighting but ultimately, very tired. We will discuss this kind of action in detail during today’s session but the bottom line is that we are sticking with the call we made in July > Netflix has topped and we are using this for our control chart for the overall market.
Keep in mind that we will likely see a lot of chop and volatile action in EUR and GBP due to Italy and Brexit and that related currency moves could lead to a lot of head-fakes but also interesting opportunities. In terms of the bigger picture, we would be a lot more focused on action in USDCNH (shorter-term) and USDJPY (longer-term).
As already discussed and reviewed, remember that there is a big difference between a scenario where we have Stocks Down/Bonds Down and one where we have Stocks Down/Bonds up… more on this in the video updates and the session.
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Wishing you a great day ahead.