The Coming Post- Two Sides of the Market

Tonight's Daily Wrap will have a lot of very good information. Earlier today, the A.M. update was so thick with information (not the kind that you can get from CNBC, but what the implications are and what it means to us strategically and tactically) to get out on time without having missed a significant portion of the open.

There are two sides of the market offering very different opinions and while some of this can be explained, much of it cannot and it essentially puts us in the land of "1+1=3" which is a condition that can't last for long whether seen via earnings and the various tricks they play to make companies look stronger than they are or actual nations.

However, if I were to put this global "Tale of Two Tells" in to more familiar terms, it's no different that our watching price action vs. the often separate and contradicting tale of underlying trade. 

IN OTHER WORDS, THESE LARGER GLOBAL INCONSISTENCIES THAT HAVE SIGNIFICANT RAMIFICATIONS ARE REALLY NO DIFFERENT THAN A DIVERGENCE BETWEEN PRICE AND UNDERLYING TRADE CONDITIONS SUCH AS THE DIVERGENCES WE LOOK FOR IN 3C (what smart money or "big" money is really doing as opposed to what price action is doing). This is no different than Leading Indicators in which price does one thing and certain indicators that "should" normally follow price, fail to do so, once again giving us a divergent signal and an edge or opportunity.

These broader market events , macro data and news that are contradicting other things, are no different from divergence analysis. In any case, if you read yesterday's IMPORTANT Market Update and DAILY WRAP, then tonight's Daily Wrap should fit right in and make sense.