The Week Ahead

I'm going out a bit on a limb with the very near term VXX bounce/call position and market pullback, but from what I see in assets that have had a strong correlation from bonds to currencies to the simple 3C charts and basic Leading Indicators, I believe  we will see early weakness on Monday. HOWEVER THIS PART OF THE FORECAST IS NEAR MEANINGLESS COMPARED TO THE REST SO I WOULD NOT GET TOO HUNG UP ON THAT.

I'm still expecting a $USDX led bounce in the equity market as well as the bond market, certain stocks are going to be shorts before others, but this gives us a chance to open or add to any positions we may want to tweak a little.

As I have tried to make clear, it doesn't look like smart money is even participating in this move, thus my own participation level is so low at present having closed VXX puts today.

In comparison to what comes next, this bounce is nearly meaningless like Monday morning's forecast.

The main theme is strong market weakness and any chance we get to open or add to positions we like should be taken. There's simply no comparing the "bounce" charts (of the bounce expected) with those of the distribution and broad deterioration through all of 2015, but increasing at an exponential rate since the April 2nd forecast of triangles to be finished and a false breakout above them which we have seen already, the deterioration there is beyond anything I've ever seen.

Try to keep the bigger picture in mind as it is not off in the distant futures, we are in the middle of it right now.