Wednesday, August 24, 2016

US Equities Market: A FED run business

Since the financial crisis back in 2008 many believe that the US equities market is essentially a FED run business.We think that this notion is true.Below you can see the close correlation between the broad US equities market and FED monetary base.

Also we would like to note that every time monetary base formed a plateau the market went sideways.However interestingly market tends to start a prolonged upmove about 6 months BEFORE a significant monetary expansion.
Current monetary plateau lasted about 2 years (on October).Market started to rally since last February which is exactly 6 months ahead of Oct 2016....
We believe that market discounts an expansion of monetary base from October 2016 onwards and therefore a significant rise for stocks...
Happy trading!

Friday, August 19, 2016

Market (SPX) is dangerously approaching stall speed

Good morning.We are getting ever so worried about market internals.Market currently resembles a plane flying at near stall speed.We believe that unless market moves higher with full speed, soon it will succumb to gravity.
So













Be prepared, a correction ahead is very possible
Support levels: 2140,2080

Thursday, August 18, 2016

Gold: Just the facts mam...

Recently we showed that gold was ready to pause (Gold: About to take a break?) and in fact that is what is happening right now.
Currently gold is consolidating just beneath the upper boundary of multiple resistance levels(horizontal, gann, monthly ichimoku).It looks like it is forming a continuation triangle (a bullish flag which means a move towards 1300 cannot be excluded).Fibo, EW and classic TA studies suggest a target for gold at 1450-1500$ on condition that it manages to break above 1370-1400$

Happy trading!  

Wednesday, August 17, 2016

Utilities (XLU) A cup and handle?

Today we would like to show a very bullish pattern for XLU.
We think that Utilities are gradually forming a Cup and Handle pattern suggesting higher prices in the future.

Happy trading!

Sunday, August 14, 2016

Staples (XLP) buy signal

Last Friday staples ETF (XLP) broke above a ST descending trendline after a breakout off a consolidation and a subsequent confirmation of the breakout.

 We are bullish on XLP and initiate a long position