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Thursday, August 29, 2019

Market Update August, 29, 2019 - "When The Cat's Away The Mice Will Play"

Seeing typical holiday trading, as expected. The sellers, are away, and the retail shorts are covering on a lower $VIX.

At yesterday's open, we saw a little shakeout to a lower recent low, but support was easy to find, and before long the $VIX had fallen back below the 20 level. 

But the best trade was found in the $RUT, which I timed perfectly, and alerted to throughout the day. As frustrating as it was trying to find a bullish reversal (pattern), on the 1 min $SPX chart, there was no chart needed for that trade. 

 $RUT - I drew up this 15 min chart this morning, and it does show the breakout points, but this was all about the $RVX coming down, after the $RUT made a fresh 3 month low.

Funny the financial fake news won't report a fresh 3 month low, but when a sector makes new highs, we're supposed to get exited about it. Look at the hoopla being generated over higher bond prices, and gold. I may have under-estimated the mass hysteria... but this isn't news to me, and when I see Faux Business parading the gold bugs across my television screen, I know that's the kiss of death for the gold rally. That's a major contrarian indicator, when the MSM starts reporting all time highs in anything.

30 Year Treasuries: Called the top in 2016. Spotted the breakout in early 2019, and now we see it back-testing (bearish) resistance at the 2015 level, and anyone who's been following me for any length of time, should already be familiar with this chart.  

Silver - Looks like they sold gold, and moved into Silver, as evidenced by the Gold to Silver ratio.

Gold to Silver ratio: Not sure yet what that means, but it's this long term trend seems to be broken.

I'm already running out of time, but I'd expect the market to hold up above $SPX 2900 going into weekly OPEX, Friday and a 3 day weekend, but I wouldn't be chasing it at the open.

I'm out of time.
Have a happy Labor Day Holiday

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