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Monday, August 26, 2019

Market Wrapup - Week Ending 8/26 - And A Look At The Week Ahead

To make it really simple, on Friday we finally filled the gap left behind on the $VIX, a week earlier.

 The catalyst was:

1. A surprise attack by China, who placed tariffs on American made automobiles, and oil.

2. Hawkish statements coming out of Jekyll Island (The Fed)

divided Fed is reluctant to cut rates CNBC

Of course the entire MSM including Faux News, blames Trump tweets for the sell-off.

We saw a shakeout in futures trading overnight, but I think that doesn't count, and especially on light holiday trading volume. I'd expect light volume to continue into the end of the month, and 3rd quarter window dressing. "Never sell a dull market", especially after 3 weeks of sell, going into a holiday. 

We're already seeing a rush into high beta names, and the $SPHB should be an easy trade, into a right shoulder. 

$SPHB - 


$RSX - Russia has really been beaten up over the past month, and the gap also fill there. There's also a leveraged 3X Russia bull. I suspect it's thinly traded, so used limit orders....  

 If you insist on trading US markets 

The NASDAQ looks like it's finished consolidating, in wave A, and I'll be adding this chart to the public charts area. 



$SPX We're seeing the same whipsawing in  a similar range (seen in purple), so trade back to 2928, and maybe it can break out this time.


 Looks like this on the 10 min chart 

Take care, 




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