Multiple Asset Update

It's early enough for the market to still put in another decent push to the upside, we are also now on or 21st of the last 20 consecutive green closes for Tuesday, there's nothing special about Tuesday, in my view this is simply traders being habituated to believing Tuesday's will always close green.

The thrust of my last post is still very much on course, I guess after a while you get use to what the scale of a reversal should look like, there's a certain symmetry between the preceding trend and reversal area.

I looked at a number of assets and this is what I've come up with so far, don't just pay attention to the specific stock, but pay attention to the trend that is evident among the risk assets and the SPY arbitrage (manipulation) and "Safety" assets.

The SPY has a building 1 min positive divergence, intraday only... true, but I don't think it fills any gap yet, I think it rounds a bit, maybe puts in a stop run/ head fake move and makes its move in the afternoon or EOD ramp, probably before the EOD ramp.

HYG (High Yield Credit) looks horrible otherwise which tells you what smart money thinks about the market, but it is 1 of the 3 levers to manipulate the SPY (HYG up, VXX and TLT down help the SPY), this is why I opened an HYG call position, HAVE YOU EVER SEEN ME OPEN A POSITION IN HYG PREVIOUS TO LAST FRIDAY?

HYG is getting very close as the rounding bottom is probably at least half way done, look for a head fake stop run on the downside as a trigger event, I think HYG calls can be bought on such a move, they would most likely need to be sold today or tomorrow-it is short term and speculative.

Both of the other levers, TLT and VXX are accumulating, they don't appear to be doing so for a short term move, they appear to be doing so for the next leg down in the market, either or both of these moving higher and HYG lower hurts the SPY arbitrage and pressures the SPY. If I see a position I'll let you know.

I'm waiting for USO to show some price strength, at that point I think not only will it make for a decent Swing trade + short, but you could use 2-3X leveraged crude short ETFs and likely Put options, but we need some momentum/price strength to sell/short in to.

I'm still watching AAPL, calls from Friday are still open, I'll let you know if I see a new call entry as it looks like it may be running some stops or putting in a possible head fake, AAPL would be helpful for the Q's to make a run in to the EOD/afternoon or even tomorrow.

The IWM, QQQ, SPY, etc all look very weak except intraday, I'd be looking to but puts in to any serious momentum we get on the upside or they could be traded using 2-3x leveraged inverse ETFS like QID, SQQQ, SPXU, SRTY, etc. This should also tell you something about the overall market.

UNG I'm seriously contemplating taking some more off the table. I'll let you know.