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Nasdaq Rally will continue, target 6700Since the December stock market crash, the sentiments on long-term economy growth in investment community soured, so much so that pundits asserted that recession would strike US economy in late 2019. The political impasse over government shutdown exacerbate the selloff. After the Fed placated the stock market and business community in Jan 4, with Jarome Powell in his speech showing some resilience on interest rate hike and promising the Fed would be market-sensitive. It appeared that President trump's belief that Fed created market turmoil and uncertainty, at last, mounted pressure in monetary policy. Other good news were supporting this rally as well, that trade talks was reopened and good job statistics is showing the economy and labor market remain robust. That being said, if there's no major ominous news or statistics indicating the economy is deteriorating , the market will comfortably consolidated and push higher afterward. With respect to OANDA:NAS100USD and NASDAQ:QQQ the key resistance is 6700 , which contained heavy trading volume amid the selloff in December.
OANDA:NAS100USDLong
by Pento_Investment
Nasdaq short term analysis: possible rally after Apple-led slumpNews came out that the US and China are starting negotiation on trade dispute, and Asia markets are mostly up despite slump in US stock market overnight. With regards to China, the economy is rapidly deteriorating , with December PMI flashing below 50, the level that defines contraction and expansion. The US is the largest export country for China, so that the Chinese government is incentivized to make a deal with President Trump. The US, on the contrary, stock market is the pillar of capital market and personal wealth. The sever dropping in Nasdaq and SP500 will probably mount considerable measure to President Trump , as he considered the booming stock market as one of his great " achievements ". In light of recent turmoil and uncertainties, I'd say the US would also like to make a deal to prop up market sentiment. Technically, the recent recovery is just a short covering practice. I expect more selling taking place, once the economy indicator worsen or trade talks run short of expectations.
CME_MINI:NQ1!Short
by Pento_Investment
INITIATE-DJI-DOW JONES-DOW DOW DOWN-STRONG SELLInitiating DJI (Dow Jones Industrial Average) with a STRONG SELL. Analysis Method: Wave Theory + Fibonacci The Chart of the Dow shows a completed Cycle Wave Sequence that lasted approx. 9 years/3,259 days from 2009 to 2018. Cycle Wave 1 extended and provided a gain of 73% +/- that lasted 420 days. Next, Cycle Wave 2 draw-down was 14% +/- and lasted 91 days. Thereafter, Cycle Wave 3 was normal and gained 90% +/- over 1,784 days. The corrective Cycle Wave 4 had a draw-down of 18% +/- and took 276 days to complete. Cycle Wave 5 extended and gained 72% +/- over 740 days. According to Elliot's rules: Compute the time and distance traveled by both the waves 2 and 4 of the lower degree. Then, your correction will be bigger in size and take longer time than the bigger of waves 2 and 4. For example, suppose wave 2 traveled 80 pips and took 7 hours, whereas wave 4 traveled 40 pips and took 5 hours. In this case, your correction will take more than 7 hours and will travel more than 80 pips. So, this Cycle's corrective sequence will last at least 276 days and the draw-down will be greater than 18% when completed. The ABC Correction after the 5th Wave was irregular. Irregular corrections usually appear after Wave 5 of a cycle, and would correct the entire five waves according to Elliott's approach to this phenomenon. The first move after the 5th Wave completes is Wave A which moves in the opposite direction of the immediate trend and is completed by 3 sub-waves. Next, Wave B that follows is also completed by 3 sub-waves but the price will exceed the top of the 5th Wave. Thereafter, we will get a normal Wave C made up of 5 sub-waves. Currently, we are in the C wave position. Irregular Corrections are most frequently seen at the end of an extended 5th wave because extended 5th waves are subject to what Elliot called ‘double retrace’. The first retrace is usually to the beginning of the extending 5th Wave or the distance traveled past the Trend-based Fibonacci Extension Level of .618 level (0-3-4 = 5th Wave Target Area). The second retrace would correct the entire wave sequence. Chart: First Retrace Complete = 5th Extension Note the Price Line, it is currently resting right above the .618 Trend-Based Fibonacci Extension Level. The .618 Fibonacci Extension Level is the extension trigger for the 5th Wave. Computing the target area for the 5th Wave is calculated by using a Trend-based Fibonacci Extension with levels 0-3-4 (Wave 1 Beginning-Wave 3 Terminal-Wave 4 Terminal). Wave Characteristics Corrective Waves Wave Degrees Currently, DJI is in Cycle Wave 3 and is expected to extend. The Target Area for Cycle Wave 3 is between $234-$217. Cycle Wave 3 will extend if $217.29 is broken. If 217.29 is broken look to $183.00 for support. Correction Cycle Count: Primary Wave 5 in Cycle Wave 3 is beginning now... Target for Primary Wave 5 is between $216-$205 Cycle Wave 3 is estimated to be completed in approx. 23 days. Why are the markets selling off? 1. Fed - Change Coming? - Inverted Yields - More Hikes? - Inflation where? Track Record for Moderating Economic Cycles? 2. China - 2025 Plan Vs. USA - Trade -Tariffs - 90 Day Deadline - Espionage in US Colleges, US Business, Trade Secrets Examples... The Department of Justice agreed to show us how they caught Mr. Mallory and why they believe his recruitment by China is part of a massive clandestine campaign to steal not just national security secrets from the U.S. government, but industrial and technological secrets from American companies."We currently have three pending cases against former intelligence officers and they're alleged to have been spying on behalf of the Chinese."It's hard to overstate how unusual it is to have three cases like this ongoing.It's hard to overstate how unusual it is to have three cases like this ongoing. It's not unusual. Its unprecedented. When it comes to espionage, China poses the greatest threat. And it's not even close compared to Russia or Iran or any other country. And if you include economic espionage, industrial espionage, it's not even in the same ballgame. It's trade secrets, proprietary data, intelligence, emerging technology, nanotechnology, hybrid, anything that they can see that is the future. Supercomputing, encryption, those are the issues that they look at. And they have a prioritized schedule that they look at and they send people forward to go collect that data. John Demers, of the Justice Department's National Security Division, says since 2011, more than 90 percent of the economic espionage cases they have charged have involved China, which has stolen secrets about everything from genetically modified rice seeds to wind-turbine technology.Demers says Chinese operatives have intensified their efforts on industries critical to Chinese president Xi Jinping's "Made in China 2025" program, a 10-year plan to jump ahead of the United States in aerospace, automation, artificial intelligence, quantum computing and other cutting edge industries. www.cbsnews.com In my recent study at Penn State University, I analyzed 274 cases of Chinese espionage. Several high-level conclusions can be drawn from those cases, which represent the last 20 years of Chinese espionage operations. China’s espionage operations have expanded dramatically, increasing in the number of operations, personnel, government, and state-owned enterprises, and foreign agents. Lastly, China’s espionage activities continue unabated despite a large number of arrests, public exposure, and most recently, U.S. trade sanctions. The volume of China’s espionage efforts combined with a trade imbalance, military growth, and foreign and trade policies have driven espionage out of its traditional shadows into the public domain. The impact of China’s espionage activities can be divided into three categories: The impact on the U.S. economy (through intellectual property theft), the impact on national security, and the impact on U.S. political institutions and governance. A conservative estimate of the annual cost to the U.S. economy from China’s economic espionage is $320 billion. The Intellectual Property Commission Report provided an estimate of the cost of IP theft for the United States in three categories — counterfeit and pirated tangible goods, software piracy, and trade theft. That estimate is somewhere between $225 billion and $600 billion. Economic losses have cascading impacts that include loss of industries, loss of domestic production capabilities, loss of jobs, reliance on others, and, of course, a trade imbalance. The U.S. Congress estimates China’s IP theft has resulted in the loss of 2 million American jobs. The cumulative effect on the U.S. economy is trillions of dollars and falling global economic competitiveness. Efforts covertly funding political candidates, universities, business, and policy initiatives in other countries have been successful. thediplomat.com SAN FRANCISCO (Reuters) - Apple’s (AAPL.O) warning on Wednesday about weak iPhone demand in the holiday quarter is a gloomy omen for Wall Street bulls hoping for an early gift in 2019 following December’s steep selloff. www.reuters.com BEIJING (Reuters) - The social media accounts and messaging apps of a Canadian businessman detained in China have been active since he was arrested in December on suspicion of being engaged in activity that endangered China’s security. 3. Geo-politics - Global Supply Chain - Belt and Road - Syria - Iran - Yemen - OPEC - Brazil - North Korea Examples... SINGAPORE (Reuters) - Oil prices fell on Thursday amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 just as crude supply is rising globally. www.reuters.com WASHINGTON (Reuters) - U.S. commanders planning for the withdrawal of U.S. troops from Syria are recommending that Kurdish fighters battling Islamic State be allowed to keep U.S.-supplied weapons, four U.S. officials said, a move that would likely anger NATO ally Turkey. www.reuters.com BRASILIA (Reuters) - Brazil’s newly inaugurated President Jair Bolsonaro said on Tuesday his election had freed the country from “socialism and political correctness,” and he vowed to tackle corruption, crime and economic mismanagement in Latin America’s largest nation. www.reuters.com WASHINGTON (Reuters) - U.S. President Donald Trump said on Wednesday he had received a “great” letter from North Korean leader Kim Jong Un and would probably meet him again in the not-too-distant future as part of efforts to persuade him to give up his nuclear weapons. www.reuters.com 4. Mueller Investigation? - Supreme Court Emergency Filings - Country A? Sealed Indictments? Supreme Court teed up to act on mystery Mueller-related grand jury case Washington (CNN) The Supreme Court could now decide as early as Wednesday afternoon whether an unnamed foreign-owned company will have to pay daily fines for avoiding a grand jury subpoena related to Robert Mueller's special counsel investigation.The company submitted a reply under seal to the Supreme Court earlier today, following written arguments it and the Justice Department made last week. The case has still been one of the most secretive in years to progress through the court system. After losing at the trial level, the DC Circuit Court closed a floor of the courthouse during appellate arguments to keep the identities of the arguing attorneys completely under wraps. Though the Supreme Court allows for cases like this to be secret in their early requests, the high court has never heard a known case where all parties and arguments stayed confidential. www-m.cnn.com According to a report from NBC, sources have indicated Mueller is nearing completion of his investigation, which began in earnest in May of 2017. Still, much of the evidence that Mueller’s team has collected remains maddeningly clandestine. Despite the near leak-proof investigation, speculation remains abundant. thenewsrep.com 5. Europe - On the edge of a Revolution? - Yellow Vest Protestors Examples... Yellow Vests: Is the movement spreading across Europe? Demonstrations in France by a ‘Yellow Vest’ group over recent weeks have dominated headlines, but similar protests, with the same symbol, have been seen in countries like Belgium, Greece, the Netherlands and in the UK. www.bbc.com French President Emmanuel Macron has seen his popularity slip to its lowest point since he took office, according to a new opinion poll published Friday. Only 40 percent of the French population said they have a favorable opinion of Macron, a drop of 3 percentage points from last month and 12 percentage points from December, while 57 percent said they hold a negative opinion of the president. www.politico.eu 'It's time for a new chapter': Merkel steps down as party leader: www.irishtimes.com BREXIT WARNING: May’s deal chaos MUST end to avoid economic STAGNATION: A study by the British Chambers of Commerce indicated that the economy has “stagnated” and that the percentage of manufacturers planning to raise prices is at its highest levels since last year. Furthermore a survey of 6,000 firms suggested that problems with hiring staff are at near-record highs. Four out of five manufacturers are struggling to hire skilled workers, with almost as many service companies experiencing a similar issue, the BBC report added. www.express.co.uk 6. Big Tech - Societal Impact? - Users Data? - Privacy and Collection? Examples... Big Tech is behaving badly. And I'm not talking about Facebook handing over your personal data to the highest bidder or Amazon playing puppeteer in its HQ2 charade. Big Tech is violating the Sherman Act of 1890. If you think an antitrust law passed over a century ago couldn't possibly address the problems of the digital era, you're wrong. Much like our Constitution, the Sherman Act was written broadly enough to handle whatever the future might hold. The Sherman Act was created to combat juggernauts that ruled entire industries like oil and railroads. It was made precisely for the highly concentrated power we see today in Big Tech. When passing the law, Senator John Sherman declared, "If we would not submit to an emperor, we should not submit to an autocrat of trade...". Google (GOOGL), Facebook (FB) and Amazon (AMZN) have monopoly power in their respective markets. A market for antitrust purposes includes only those options that consumers would switch to when prices went up or quality went down a small amount. Facebook, for example, doesn't need to have a monopoly over a market as broad as "all social media." All social media platforms are not substitutes for Facebook. You can't see baby pictures on LinkedIn, and you can't keep in touch with Grandma on Twitter. The closest substitute to Facebook is Instagram, which isn't much of a choice since Facebook owns it. The nearly 20-year-old case of US v. Microsoft illustrates how today's tech giants are breaking the law. The court held that Microsoft used its monopoly power in "Intel-compatible desktop PC operating systems" to squash the Netscape browser by requiring computer makers to instead install Microsoft's own Internet Explorer browser. Rather than competing on the merits, Microsoft used its monopoly power to try to take over the internet browser market. Ironically, if the Department of Justice had not sued Microsoft to stop its anti-competitive behavior, Google might not exist! After taking over the internet browser market, Microsoft could have required computer makers to use its own search engine, too. Google, Amazon and Facebook are following the same playbook. The tech giants have "platform privilege" — the incentive and ability to prioritize their own goods and services over those of competitors that depend on their platforms. By doing so, they contend they are improving their products and benefiting customers. An entrepreneur can create a superior product or service and still get crushed because Big Tech is controlling the game and playing it, too. This distorted playing field strikes at the heart of the American Dream. And it deprives consumers of the choice, innovation and quality that comes from competition on the merits. www.cnn.com 6. Divided Government - Government Shutdown - Able to come to agreement? Example... Congressional leaders will meet in the White House Situation Room today for a border security briefing. President Trump will host congressional leaders in the Situation Room for a 3 p.m. ET briefing on border security, according to the White House. What's at stake: The meeting comes as negotiations to re-open about a quarter of the federal government have been frozen for nearly two weeks, and just one day before Democrats take over as the majority party in the House. Compromise proposals, to the extent they existed in the first place, have not been traded or even discussed in recent days as both sides settled into their respective positions. Who's likely to attend: A Hill source familiar with the meeting said few details are known about this homeland security briefing, including who will lead it, what else is on the agenda or who else will attend. The invited congressional leaders include Senate Majority Leader Mitch McConnell, Senate Republican Conference Chair John Thune, Senate Minority Leader Chuck Schumer, Senate Minority Whip Dick Durbin, presumptive incoming House Speaker Nancy Pelosi, incoming House Majority Leader Steny Hoyer, incoming House Minority Leader Kevin McCarthy and incoming House Minority Whip Steve Scalise, the source said. 7. Immigration - Caravans arriving on Mexico's border - Trump to close border? Roughly 150 migrants attempted to climb over or crawl under the U.S.-Mexico border fence into California in a clash with U.S. Customs and Border Protection agents involving rocks and tear gas, the agency said. Agents first discovered a group of 45 migrants in San Diego Monday night due to CBP’s increased presence at the border, following the ongoing migrant caravan. The few dozen migrants were then turned back toward Mexico, CBP said. Shortly after, migrants began throwing rocks over the fence at CBP agents and officers, said authorities. Migrant caravan - live updates: Trump threatens to close border amid government shutdown as he claims new caravan is forming: People from the three nations formed the bulk of the caravans that have reached the US border in recent weeks, with Mr Trump claiming - without evidence - another is forming in Honduras. It comes as US immigration officials face questions over the deaths of two Guatemalan children at the border in the last two weeks.Mexico is already struggling to cope with a 1,000 percent increase in the number of Central Americans who have sought asylum in this country in the past four years. And the government has slashed the budgets for its migration and refugee agencies for 2019 as part of an austerity plan carried out by the new president, Andrés Manuel López. www.washingtonpost.com Migrant caravan in pictures: A river of people moving north: Thousands of migrants from Central America are crossing Mexico from south to north in the hope of reaching the United States. Many of them are parents with young children seeking a better life away from the violence and lack of opportunities in their home countries. The size of the group has steadily grown from about 1,000 to more than 7,000, according to a United Nations estimate. Observers have described it as "a river of people". Photojournalist Encarni Pindado documented their progress north across the Guatemala-Mexico border.“We have nothing, no program, no fund, no support, nothing to receive people who are sent back from the United States,” said María Dolores París Pombo, a sociologist at the Colegio de la Frontera Norte in Tijuana, who specializes in immigration. www.bbc.com 8. Digital Assets/Blockchain - About to disrupt all industries? Example... Market research firm Technavio sees the transportation of refrigerated goods by land to grow at a compound annual rate of 7% from 2018 to 2022.Aiding in such growth is the increase of blockchain worldwide, which, according to the firm, will promote transparency and reduce the likelihood of data corruption or alteration. In its press release, Technavio said, “The technology is attaining the growth stage in developed countries. But, the blockchain technology is still in its introduction stage in developing regions such as APAC and the Middle East.” Countries such as China and Japan, it added, have begun using the technology for the pharmaceutical industry, information technology, and transportation, among other industries. Source: Coingeek.com/blockchain-seen-to-grow-refrigerated-transport-market 9. Corporate Credit - Large-Caps over-leveraged? Examples... Suddenly There's No Appetite for Bond Deals as Spreads Widen. Over 40% of the entire corporate bond market, 3.15 Trillion in BBB-rated bonds is one step above junk! Rise of the Zombie. In the US, 15% of the companies in the S&P 1500 are Zombie corporations. The Zombie attribute applies to firms that are unable to cover debt servicing costs from current profits over an extended period. Prolonged cheap debt explains the Rise of the Zombie Corporations. Zombie corporations only survive because they can roll over debt. There are many investment grade bond funds that will either have to break their agreements or dump up to $3.15 trillion of debt if there are significant debt downgrades, and there will be. This will spill over into equities in a major way. Don't be fooled by these stock market rallies. Bonds are due for a huge repricing event and stocks will follow in a major way. This bubble, widely referred to as the "everything bubble" is really an artifact of a junk bond market fueled by increasingly ignorant Fed policy since 2009. The percentage of investment grade bonds rated higher than BBB has fallen from 59% in 1996 to 42.8% in August of 2018. www.fxstreet.com GE’s bonds have crashed by around 14 percent - a monumental underperformance in bond market terms. Analysts worry this could signal worse times ahead for investment grade credit overall. According to the Bank of America/Merrill Lynch index, .MERC0A0 the sector’s total 2018 return is negative 2.5 percent, the largest drop since 2008. U.S. companies feasted on low interest rates in the decade since the crisis, leaving corporate balance sheets leveraged to the hilt with some $9.1 trillion of debt, almost double the 2007 total of $4.9 trillion, according to Securities Industry and Financial Markets Association. www.reuters.com 10. Brexit - Hard Exit? - Soft Exit? - No Exit? Example... First came the news that the European Court of Justice (ECJ) is likely to rule that Britain may unilaterally suspend the exit process from the EU without consulting other members—or the ECJ itself. That undermines Prime Minister Theresa May’s argument that members of Parliament face a choice between the deal she had negotiated with Brussels or an economically disastrous no-deal exit. Soon, lawmakers will probably have a third option: to push back the March 29 deadline for Britain’s departure to allow time for more talks, or a second referendum. foreignpolicy.com Welcome to 2019, Happy New Years to All. Buckle up, It looks like we are going to have a hell of a year to say the least... Will update... For further market analysis, please visit my related idea (SPY-CRASH IMMINENT). -AB
AMEX:DIAShort
by FibMarketWatch
4
Apple is Falling from the TreeShares of AAPL are trouble, so long as this zone of support between $144.79-150.24. If not, a possible relief rally may come in to play because it's getting oversold on a weekly basis (RSI <30). Even so, any strength should be sold in to, as I see this thing falling hard. Minor breakout resistance (dotted white line), but the extensions from the major move has downside targets at 127.2% and 161.8%, $127.60 and $98.80, respectively. Finally, $89.78 is the line in the sand... if we get there, you'll get a chart from me far in advance. It may be worth stepping in to a small position, but go easy because you're betting this the bottom. Have an exit strategy, and if possible, play via options to define risk. I'm buying some near dated called expecting a bounce to $178.78, give or take. From there, I'll be looking to go short on a longer-term. Happy Trading!
NASDAQ:AAPLShort
by EchoAlphaBravo
SPX Is Strong SellI can see the hate mail now, but let's look at empirical evidence rather than emotional hypotheses. I marked several indicators that confirm this reiteration of a decline that cold probe the 1510 level, the last untested breakout from the post-crisis era. Don't misconstrue me, I'm not not say thta's about to happen overnight, but if we are indeed entering a bear market, which it appears we are, that's the level we must hold and there should be massive support there. Before we get there, look for 2280 on SPX.
SP:SPXShort
by EchoAlphaBravo
1
Next Week Trade Plan: $82 Expected Move + Gravity Points + ExtraFor what it's worth, I don't have any Gravity Points identified under the "Gravity Point Very Hard" Chart Dump this week. See what I see. Last Week's Post Other Relevant Charts: (One Last Rally) (Interesting Development) (Kings Crown) (Extremely Useful) (Combo Equal-Weight Indice Chart) (Extremely Useful) (Should've made it public) (Semi-Useful) (Just for fun) Sector & Indice Trendline Watch: I use a fan of different trendlines from different anchor points (candle wick, candle body, Day prior, Day after, ect.) and connected them in a similar way to 2015/2016 Lows to capture a more complete picture of the trendline. That way I'm not second guessing if the trend is broken or not because I have all of the possibly variations already displayed. See Below: Indice: (Broke?) (Very Weak) (Hanging on) Sector: (Strong) (Very Weak) (Struggling) (Broke) (Still Well Above)
CME_MINI:ES1!
by RHTrading
4
Next Week Trade Plan: $70 Expected Move + Gravity PointsVolatility Expansion from last week's $62 Expected Move. I actually expect us to burst to the upside and then Fade for the rest of the week. You can see the 'Event Risk' being priced in because of the G20, but on Monday we have a $47 Expected Move in one day alone. I marked this in Yellow on the screen. Interestingly enough, Monday's $47 move brings us up into the next Gravity Point and where we've failed twice before at 2811. How much would I trust the Expected Move? Less than usual. The market place is trading inefficiently. We just had two weeks in a row where we exploded outside of the expected move, both to the downside and last week to the upside. How to look at the Expected Move: It's a probability Distribution. Imagine the bell curve. 68.26% of the time price will remain inside of the Expected Move. So pretty much 7 out of 10 weeks. This gives you an edge of 20%, where 50% represents completely random (no edge). 95.4% of the time Price will remain within 2 Standard Deviations of the Expected Move. 99.74% of the time Price will remain within 3 Standard Deviations of the Expected Move. Last week we had a 2.5 SD move to the upside in relation to what the Option Market had priced in. --> This means the marketplace is priced inefficiently. The week prior we also broke outside of the Expected Move by about 2.5 Standard Deviations but to the downside. These are extremely rare events and does not diminish the effectiveness of this strategy. I like to couple the Expected Move with Gravity Points, which is my suggestion for this week.
CME_MINI:ES1!
by RHTrading
1
Up in Smoke? Nope, just getting lit!Shares of MO have been under tremendous pressure since the FDA mentioned banning methol cigs/e-flavors, but don't let that fool you. This cash cow has plenty of firepower to withstand this minor hiccup and as shown on the chart, has fallen exactly to trend line support going back to 1969 (almost 50 years). This is a screaming buy! I'm already long shares, selling covered calls against to boost income. I'm adding aggressively on this decline. I'd do the same if I were you!
NYSE:MOLong
by EchoAlphaBravo
S&P 500 Trading Plan: Gravity Points + Expected Move ($62)Our first expansion of Implied Volatility in 3 weeks. Last week was $47 Expected Move, this week's Expected Move is $62. I'm not sure what this next week will bring us, my bias short term is to the upside. There's a confluence of support right below us at $2,600. But at the same time I don't like the long trade unless we see some extreme capitulation-esk move early next week with substantial volume. Last week we saw a 3 sigma move that actually closed OUTSIDE of the Expected Move which means that the options market isn't adequately pricing risk in the marketplace. 9 times out of 10 it closes inside of the Expected Move. We saw this in the 3 prior weeks of trade. Watching JNK closely, Need to see it turn around. Watching the Financials closely at this level. Really need to see them above $26.50. Watching Boeing closely, Boeing needs to stabilize if the Dow is going to rally. (UNH (Up 20% YTD) is the 2nd largest constituent of the Dow, and I will be watching this closely as well). Watching Rotation of sectors, specifically Defensive names for downside continuation; KO, JNJ, PG, MRK, PEP, VZ, MCD, Healthcare/Retail/Discretionary/Real Estate. I haven't been able to form any theories on where money will rotate into yet. Last Week's Trading Plan: Goodluck out there Gentlemen, -RH
CME_MINI:ES1!
by RHTrading
SPY: Bullish Case / Indicator StoriesWe have a strong bounce here pre market. This honestly looks pretty strong to me. This is my 15 minute time frame. Hey, I'm not a permabear I promise. This is the earliest timeframe that I could find a bull case for, and thought it was convincing. On my Stochastics on the bottom of the chart; My longer term Blue Stochastic has risen above the lower black threshold line (40) for the first time in a long time. This comes after my Blue Stochastic has been diverging for several days now, and the Shorter Term Stochastic also shows a divergence. On the RSI on the Top of the Indicators; Momentum has clearly shown strong buying pressure at this time resulting in a powerful move higher in price. Clear divergence on my Shorter Term RSI Black Line Longer Term RSI Red Line has moved decisively, with conviction, over the center (50) line. This comes after an extended period of time spent below the center (50) line. Strong breaks above the center (50) line often stay above the center line The shorter term RSI Black Line has risen above my Upper Black Line Threshold (62) so which allows me to rule out false bounces mostly, and breakdowns.
CME_MINI:ES1!Long
by RHTrading
S&P 500 Trading Plan: $47 Implied Volatility + Gravity PointsLast week's Implied Volatility was $49. This week's Implied Volatility Expected Move is $47. So another volatility contraction right? Wrong. We've got a holiday next week folks and we've got three and a half trading sessions. Given this, I'm inclined to say it's going to be a pretty volatile week. I zoomed in to the 15 minute time frame here, as opposed to my usual 30 minute chart because I wanted to show just how extremely accurate and important these Gravity Points have been for weeks and weeks now. Use them. I intend on making another 30 minute time frame just for continuity and bigger picture. Last Week's Trading Plan: - Incredible action last week here. - On the button we came back inside of the Implied Volatility Expected Move.
CME_MINI:ES1!
by RHTrading
S&P 500 Implied Volatility ($50) + Gravity Points = Trading PlanAnother contraction. Last week = $65. Next week's Expected Move is $50. I don't like it. I don't have to like it. Why do I care? Historical volatility is still outpacing implied volatility. $50 is what we moved in 1 trading sessions last week and right now that same move is what's priced in right now spread over the whole week. I didn't like last week's $65 Expected Move and you can see that we moved well outside of it before ultimately coming back into it on Friday which creates opportunity for us if it moves significantly outside of the $50 range to expect it to come back inside the range. There's a tremendous amount going on right now. Everyone got caught up with the elections and what-not last week, but it was also the first week, if you were paying attention, that we now have HARD evidence that we are seeing a slowdown, specifically a slowdown in your Wealth-Effect companies. (TIF / Ferrari / Marriot / Wynn) Do we point fingers at the FED? At this point who cares. We know that they're pulling the rug out from under us. We should just simply expect more volatility. And it is clearly and distinctively underway by the fact that 45% of companies in the S&P 500 are now in bear market territory. This is going to be absolutely brutal for retail clientele. Why? Because the market is excellent at bringing people out of the woodwork and pulling their capital back into the marketplace. Who do you think got suckered into this Rip-Your-Face-Off move to the upside over the last 2 weeks? Institutions are selling their shares to Retail right now. Algorithms are going to systematically and over time dismantle individual sectors and the market at large.* *cough *cough XHB/EEM/SMH There's so much opportunity out there right now. Here is last week's post:
CME_MINI:ES1!
by RHTrading
3
DIA index is bouncing back from MA and trend line -> BuyHi Traders! AMEX:DIA index is bouncing back from MA and trend line on the daily chart. RSI and Stoch RSI are in oversold area. Price closed above the 200 Moving Average and ascending trend line. Still on uptrend with recent correction. => good long opportunity If you think this analysis is useful and you want to receive new updates about this idea, leave your comment or your LIKE! Thank you for your support and may the markets be with you!
AMEX:DIALong
by paintek
1