• U.S stocks are seeing some serious rotations, in the major indexes and even in sectors. It is evident the money flowing out of tech and small caps and back into larger cap stocks. In Europe, Germany and France are showing signs of life moving back to the upside. Emerging markets failing short-term bearish setups.
  • Nothing new to note in FX. Increased strength in the dollar is obviously the factor everyone is looking at. Wait for new momentum before placing any trades.
  • Good short plays in commodities right now. Gold, silver and crude oil all showing great bearish setups in the short-term.


Market: Nasdaq

Reason for observation: Reversal from highs

Short-term bias: Bullish

Long-term bias: Bullish

Tech stocks showing some weakness to finish the week. In no way are we calling for any significant bearish breakdowns at this time but it does seem sideways/minor downside is likely over the next couple weeks.


Market: Dow

Reason for observation: Closing week near highs

Short-term bias: Bullish

Long-term bias: Bullish

Showing the dow to display the contrast between the Nasdaq chart. Dow stocks making new highs on the daily and holding those levels to finish the week. Watch for strength in U.S stocks to be lead by large cap stocks on the next rally.


Market: U.S Dollar

Reason for observation: Daily bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Daily and weekly bull flag setups enough to move our longer term bias to bullish on the U.S dollar. This volatility contraction has a higher probability of breaking upwards than downwards. Weekly bull flag is the catalyst for a multi-week rally in the U.S dollar.


Market: 20 yr U.S tsy

Reason for observation: Ready to make new lows

Short-term bias: Bearish

Long-term bias: Bearish

Setup unclear on the daily time frame but U.S bonds feel heavy here. Bears are all over this. Do not fade weakness.


Market: Gold

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Neutral

Shorts valid once again on this breakdown of the daily bear flag. Any rally in gold is going to leave a weekly bear flag setup as well, longs do not look in good shape in the near term.


Market: Crude oil

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

Nice measured move setup in crude oil. Sell offs usually happen fast out of this kind of pattern so it may not hurt to be early with trade entry. Longer term picture is still strongly bullish.