Quick Update

As was my opinion in the last market update, my opinion remains the same, the market averages have to come down from their current intraday levels and do some more work on their base before they can bounce and while it may or may not be a strong bounce or just a stronger move within the recent loitering chop, we'll have to wait on the charts to give us a clue as they straighten out as they need to in order for a reasonable trade to be taken.

I looked at some different assets and as I concluded last week in the Week Ahead forecast and as I have been arguing for most of the year, the $USD is very important and has a direct correlation to bonds, equities, a slightly leading correlation to gold, etc. I'll show you this.

THIS IS ALL CARRY TRADE RELATED AND YOU CAN LOOK AT A FEW $USD CHARTS ALONE AND SEE WHICH WAY THIS ENDS FOR EQUITIES WITHOUT ANY OF THE OTHER INFORMATION WE HAVE PUT TOGETHER.

I considered perhaps another VXX position (1-day short term) as I believe the market HAS to come down to do this repair work, but I don't see the charts to support a trade there and I suspect it "might" be because the moving lower may occur in futures overnight.

So for now, it's patience, I don't think we are far from some quick trades that are worthwhile or will be and not far from big picture entries as we held off on positions like NFLX over the last couple of days looking for a bounce, this should be it (As an example).

I have to gather a few more charts and then I'll post what I've found which is something we have been following for some time and more and more recently.