• All eyes pretty much on U.S stocks. New highs in Nasdaq and Russell 2000. The S&P and Dow look ready to catch up and make new highs as well.
  • Weakness in the dollar is likely to lead to more strength in the near term. The resolve of the pullback will likely send ripples throughout FX.
  • Copper stole the show in commodities, up 3 sigma on the week and back in play.


Market: S&P500

Reason for observation: Daily bull flag trigger

Short-term bias: Bullish

Long-term bias: Bullish

Clean upside break out for the S&P. Closing the week on highs, looks like another go at the previous pivot is the high probability move.


Market: Russell 2000

Reason for observation: New all time highs

Short-term bias: Bullish

Long-term bias: Bullish

Small cap stocks running away to the upside here. Risk-on is still the mode.


Market: GBPUSD

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bearish

All signs pointing south for the GBPUSD. This simple daily bear flag is a good place to get short on any weakness.


Market: 20 yr U.S tsy

Reason for observation: More sideways to come

Short-term bias: Neutral

Long-term bias: Bearish

We pointed out recently that the fast move up and then down in U.S bonds was likely to lead to sideways price action. Last week’s trading fulfilled that. The volatility compression will set the stage for another large move out of the range.


Market: Gold

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Neutral

Complex daily bear flag in Gold still valid.


Market: Copper

Reason for observation: Change of character

Short-term bias: Bullish

Long-term bias: Bullish

We pointed out the volatility contraction in Copper recently which by chance happened to coincide with last week’s massive breakout. Any pullback on the daily will setup extremely attractive long trades.