• U.S stocks still risk-on. Nasdaq and Russell 2000 making new all time highs during the week. Europe finally looking ready to join the equity rally once again. Global stocks look extremely bullish.
  • Obviously the big story in FX is the dollar strength versus the weakness in the euro and pound (among other currencies as well). This development is in line with our expectations and it does look sustainable for the time being.
  • Bloodbath in U.S dollar priced commodities. Red across the board, except for Natural Gas.. Attractive short setups and trades from Gold to crude to soybeans


Market: S&P500

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Another short term long setup in the S&P500. Bottom wicks inside the pullback hinting at accumulation. High probability this pullback resolves to the upside.


Market: DAX

Reason for observation: Daily bull flag trigger

Short-term bias: Bullish

Long-term bias: Bullish

German stocks leading the charge in Europe. Sloppy complex pullback breaking sharply to the upside on Thursday. Should help put European stocks back into rally mode after a multi-week cool off.


Market: U.S Dollar

Reason for observation: Daily bull flag trigger

Short-term bias: Bullish

Long-term bias: Bullish

Enough bullish evidence to tilt our long-term bias from neutral to bullish. The U.S dollar looks setup for further appreciation during the U.S summer months.


Market: AUDUSD

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Bearish

A ton of downside potential here in the AUDUSD. All signs pointing south.


Market: Gold

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Neutral

Gold smacked down hard on Friday. Bears seem to be firmly in control in the near term. Do not buy this weakness in Gold, additional downside is likely.


Market: Crude oil

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Bullish

A quick short term setup in crude oil, additional selling pressure should not invalidate the longer term bullish price structure for the time being.