Quick Market Update

So far we are looking good for the scenario described in the last post.

The market averages are all positive, the Index futures are positive, the main asset that is influencing the market and has been for well over a month, the USD/JPY looks set to do its thing, VXX is already failing and TLT has as well. HYG is in positive position, most everything that matters is set,

 VXX leading negative divergence, this is why I said for short term/leveraged longs, you might want to take profits. Remember that VXX, TLT and HYG are the 3 assets used in SPY Arbitrage manipulation, you need TLT and VXX to move down and HYG to move up to support the market, VXX has a very clear negative divergence and has already lost ground.

 TLT also needs to be down, remember I closed the Aug. Calls earlier today, you can see why as it has lost all gains since Friday with a leading negative divergence, just as the SPY Arb. manipulation needs.

 I added to the HYG Calls earlier, this one needs to move up to support the SPY arbitrage, it has a nice leading positive divergence.

99% of the market doesn't have any idea that these 3 assets have more to do with moving and manipulating the market intraday than almost anything they follow or CNBC feeds them and at important intraday inflection points, fewer can see the underlying trade we can long before price starts to show where it's going.

 The SPY and other averages are ready and ...

For right now, the most important correlation (because it wasn't always this, in fact it rarely is ever this and probably never to this extent) is the last carry trade standing which may have been destroyed today with the break of $101 and then $100, but...

As you see, the pair is quite positive and looks ready to go.