XLF

Constructive Action

| 50Pips
“Opportunity dances with those already on the dance floor.” – H. Jackson Brown, Jr.
What a difference a day makes… for a quick refresher on what we are looking for, you can always watch our Weely Outlook Video .
In the terms of the bigger picture these initial corrections are just a rounding error but that does not mean that they can’t turn into healthy moves. This is where you don’t take anything for granted, you stay unbiased but you realize that that best trade on the board may be the one you are already holding. Gold and Bonds were the first that confirmed defensive flows as IWM was the only one trying to move until XLF decided to join in.
To be continued…

If you are interested in attending a 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.

Strong Convictions, Loosely Held

| 50Pips
“Trading is very simple; either you make money or you don’t make money. I wasn’t depending on anyone else. When you work for someone else, if you make money somebody gives you a bonus and if you lose money, somebody else pays your salary. When I was working for myself, it was the ultimate meritocracy, I was worth exactly what I made, no more, no less.” – David Kyte
We are going to have to be patient this week. All the moves are in play so we have no reason to review our thoughts/analysis from the Weely Outlook Video . However, we must remember that in these kinds of scenarios, it is extremely important to find the right balance between being patient and still being unbiased enough to change our views, should key levels break and/or context change.
As followed up on Twitter, don’t forget to keep an eye on Financials. we have been on this for a while and feel that the way this chart is behaving, especially after the hike, is one of the key tells. The first chart is the monthly view we posted at the beginning of the month and the second, the recent action on the 1h.

If you are interested in attending a 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.

 

Auntie Yellen in Da House

| 50Pips
“In music, the fundamental tone is the lowest, or root, tone of a chord.  Without its presence, no true character is established.  Our actions in life are as similarly varied and complex as music.  Without a thorough grounding, there is no harmony… Everyone wants to be daring, creative, and original.  Everyone wants to do things in new ways.  But unless we return over and over again to the basics, we will have no chance to truly soar.  Do not forget the root.  Without it, we can never issue forth true power.” – 365 Tao: Daily Meditations
As discussed in our Weely Outlook Video , for a longer term perspective, we remained focused on where price will close this week and how the action is contributing to monthly developments in the charts. There have been quite a few decent intraday opportunities so far this week but we must not forget that we are at what could end up being a key inflection point and this is why we are so focused on the bigger picture. As usual, we work very hard at simply interpreting what price is telling us and factoring that into the current context without having any particular bias. Naturally, this is easier said than done but we feel that we do a pretty good job at staying neutral.
We’ll leave you with a few updated charts to scan while we wait for the long awaited March FOMC release:

If you are interested in attending a 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.

 

Patiently Stalking Action

| 50Pips
“Life is accumulative – Either our errors accumulate to what we don’t get, or our wise decisions accumulate into what we do get.”
– Jim Rohn
All about Yellen today with the risk being that she pours a tiny little bit of cold water on this recent USD run setting up potential squeeze action. It’s going to very interesting to see how Friday flows decide to move. Naturally we are still very much focused on the action on GBP and other charts at key inflection points like XLF.
The reversal on EEM represents a beautiful example for finding the right way to express a general theme and patiently waiting for the levels and r/r to stack up for the trade. Overall, we remain in a choppy area but the action remains constructive for a healthy retracement.

eemxlf

Inflection Point?

| 50Pips
“That men do not learn very much from the lessons of history is the most important of all the lessons that history has to teach.”
– Aldous Huxley
Once again, it’s all about President Trump. The key focus this week is going to be on the Tuesday address to the joint session of Congress. We’ll have to see how he navigates this and how the markets decide to react and follow-through. Attached are some interesting charts we’ll be stalking.

eemxlfymaudusdeurusddtltdxyslvgldiwmeurusdwgbpusd