Weekly Sentiment Update: That Is a Moderate Bull I See!
Permabulls always say everyone’s bearish. And permabears always say everyone’s bullish. Neither side provides evidence for their views. So let’s see how traders are feeling into today’s inauguration: 1) VIX Spread – Bullish The 3-month VIX spread is at +3.65, which indicates traders are not very concerned with volatility This is a bullish reading. 2) CNN Fear […]
Continue Reading -->The Currency of Lunacy
“The inevitable never happens. It is the unexpected always.” -John Maynard Keynes A miraculous rally in stocks has unfolded since February 9. Miracles exist; but not in financial markets. A strong dollar did not impair the post-election rally. Curiously, when the dollar pulled back, stocks remained range-bound. Then when the dollar began to turn up […]
Continue Reading -->Why ACIA Could Hit $70 by March 7
Acacia Communications (ACIA) topped out near $129 on September 7, 2016. On the Square of 9 Wheel, 129 vectors/vibrates off September 7 for a classic time/price square-out. Two cycles of 360 degrees (2 full squares) down from 129 is $54. Following a failed breakout attempt on January 24th, ACIA declined to a new low and bottomed […]
Continue Reading -->IWM: Breakout or Trap Door?
After the November IWM low at 115, we projected the likelihood of a rally to 138. This is because 138 ties to 180 degrees in price up and opposite 115. IWM respected 138 peaking at that level in December followed by a 2 month flat. Thursday/Friday saw a breakout but IWM tailed off yesterday. The […]
Continue Reading -->Trader Mailbag: IBB vs. XBI
Dear Mike, I noticed that sometimes in your newsletter (Editor’s Note: sign up free at the bottom of this article), you talk about XBI and other times IBB. What is the difference between these? Carl Thank you for the question Carl. XBI and IBB are the two most popular biotechnology ETF’s. XBI is the symbol […]
Continue Reading -->Russell 2000 Hits Record Highs, May Be Ready for a Breakout
The Russell 2000 just made a new all-time high, matching last week’s records in the SPX, Dow, and Nasdaq. In doing so, it is above this little 1385-1390 range at which it failed 3 times in a row: We can also view those 3 failures as top points of a descending trendline: I’d keep an […]
Continue Reading -->GDXJ: Is Gold Ready to Rock?
GDXJ tested the key 40 level on the open and is rebounding to its overhead 50 period on the hourly. As you know, 39.50 to 40 represents 180 degrees up from the 27.50 December low. As walked through in this morning’s Morning Call Express video it will be important to see whether the breakout over […]
Continue Reading -->Weekly Sentiment Update – Traders Actually Look Bullish!
Permabulls always say everyone’s bearish. And permabears always say everyone’s bullish. Neither side provides evidence for their views. So let’s see how traders are feeling into today’s inauguration: 1) VIX Spread – Bullish The 3-month VIX spread is at +5, which indicates traders are not concerned with volatility. This is a bullish reading. 2) CNN Fear & […]
Continue Reading -->The Intraday Slingshot Strategy: REN
REN is an energy name that staged a textbook Slingshot Reversal on Wednesday. REN undercut its 20 day line for the first time in two months on Tuesday, 2/7, and followed through initially. However, a Slingshot played out when REN knifed through the gap. The move through the gap was followed by an Opening Range […]
Continue Reading -->Not Even Trump Can Help Twitter!
Yesterday after the close, Twitter (TWTR) announced yet another disappointing quarterly earnings report. On the surface, Twitter has the wind at its back. We just had the craziest Presidential election in history, and the most active global news flow I’ve ever seen. Black Lives Matter. Migrant crisis. Syria. The Brexit. Italy’s No Vote. Right wing […]
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