Category: Financial Markets Update

FOR THURSDAY: (8/24) Trade waiting on Jackson Hole on Thursday and it’s still the dog days of summer. We have a sense that there will be enough surprises that we can’t be over-positioned in thin conditions.Continue reading

FOR WEDNESDAY: (8/23) Trade waiting on Jackson Hole on Thursday and it’s still the dog days of summer. Are cycles inverting with stocks higher and that will pull the dollar up and push T-notes and gold lower? Not enough information today to confirm that but logic is suggesting as much.

SEPT. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.

S & P ANALYSIS FOR WEDNESDAY: (8/23) We didn’t get an intraday pullback to 2430, as 2450 and then some came in quickly. 2459-60 is resistance now and patterns suggest a rally to 2463.25 and then a 15-tick pullback to 2448. We had thought that 2477 would be next on this move and computer models now suggest 2485-6. We’re open to 2520 into September. Our original monthly chart research had suggested a low on Monday and a recovery from there.

OVERALL: Market hit the abc completion in the 2415 region.

WEEKLY CHART: There’s still a good possibility that based on patterns that the current fall is a 4th wave and that a new high to 2500-2520 would be possible in September but a secondary high to 2477 is more likely. In the end we still max. 2300-2320 as a fall correction target with a multi-year high due into 2018. Market needs to hold 2400 into Monday and shoot out of there to open up that scenario. World violence cycles are strong the next few weeks and it won’t take much to unsettle this tired market.

CYCLES OVERVIEW: Higher Wednesday; lower Thursday; higher Friday.

FOR TUESDAY: (8/22) Trade waiting on Jackson Hole on Thursday and it’s still the dog days of summer. We don’t like cycles on Tuesday and if the stock market doesn’t gallop on Monday night, it may still be a sale. We have a bias toward buying gold on dips and selling dollar rallies the next few days.Continue reading

FOR MONDAY: (8/21) The total Solar eclipse is on Monday. They are dangerous to watch even with protective glasses so be safe. They can create eerie feelings so markets could be particularly wild if any wild news hits. We can only go with patterns analysis and watch key breakdown figures. Many world events will be triggered as a result of eclipses. Expect high volatility next week even if Monday is quiet for some reason because fund managers are still at the beach.Continue reading

FOR FRIDAY: (8/18) We knew to sell on Thursday but the market didn’t quite get as high as we would have liked and we missed it and had not thought it would break so hard. Cycles are very whippy the next 2-3 days. Violence and terrorism cycles are strong into late August and so while we hope Barcelona and Virginia are it, we fear there’s more coming. Harder to hold trades overnight. Will have to see what the morning brings.Continue reading

FOR THURSDAY: (8/17) Stock market tiring and not getting good news with the dissolution of the Business Council. Still, cycles will turn better in the morning if the market doesn’t fold overnight. Gold cycles are stronger into next week so thinking we missed the buy and will get in. That would mean the dollar won’t let us go short at 9442.Continue reading

FOR WEDNESDAY: (8/16) Waiting on FOMC for Wednesday but cycles seem the weakest if politicians get into any major fighting. S&P has the best chance for a pullback on Thursday but it may not be that big. Last day down for metals so let’s hope they don’t fall too much.Continue reading

FOR TUESDAY: (8/15) (8/14) Some saber-rattling already overnight. Will it reignite fears quickly? Thinking a volatile week but these sucker punch weeks often end higher and option expiration is higher and the market often goes up for them. Hard to hold and trade overnight but we’ll look for key patterns to keep us in tune.Continue reading

FOR MONDAY: (8/14) Markets remained bid in the direction of the crisis but were hoping that diplomatic solutions would develop over the weekend. If they do then most of our positions are in jeopardy. Patterns suggest another high on gold to 1306 and another low on S & P to 2417 or 2410 and another low on the dollar to 9239 so I suspect that the crisis will not abate until those patterns are complete.

SEPT. E-MINI S & P 500

S & P ANALYSIS FOR MONDAY: (8/14) Aug. 9th was Bradley Major turn date that we had seen for weeks and the high on the S & P came in at 2488.75. The break has fallen about 59 points. Five waves down project 2417 with lower support at 2410 and 2400. We would think that the lower target needs to come in and then we’ll get a 3-wave bounce before another push lower. If that comes in quickly on Sunday night or Monday, we could get a strong bounce out of there next week if there are signs of a diplomatic solution.

We’re so used to sucker punches from the Plunge Protection team that we never quite trust the bears lead on this one. Korea hangs in the balance but Russia and China are trying to prevent a military confrontation and the Secretary of Defense continues to pursue diplomatic ties. We have more cycle lows than cycle highs dominating into Aug. 21st but the way news goes, if there is a sudden diplomatic solution, the market will take off.

OVERALL: We are assuming with cycle lows into Aug. 21 that a deeper break toward 2320 could happen by then if 2300 comes out. The 5665 region is very key on NQ 100 futures and that will have to be watched carefully also. We don’t want to move into Chicken Little territory but the cycles building up to Aug. 21 will create that energy much like we saw before the January 1990 Gulf War attack.

There is a small possibility that based on patterns that the current fall is a 4th wave and that a new high to 2500-2520 would be possible in September. In the end we still see only 2300-2320 as a fall correction target with a multi-year high due into 2018.

What’s next? Our geo-political cycles are still intense until Aug. 26 but things may not seem to ease until Labor Day so without N. Korea stepping back in a big way or China showing who is the Big Daddy, 2414 will come in quickly and that leaves 2320 to coming in sooner.

OVERALL: We estimate a drop to 2320 quickly. We wonder if it will be similar to the tensions building up into the Gulf War in 1990 where the market fell sharply into the fear and then rallied sharply when it was clear we would win. The parallel cycles the next few weeks are strong if we do take out North Korean missile launchers.

CYCLES OVERVIEW: Lower into Aug. 21.

FOR FRIDAY: (8/11) We won’t be bored with the dog days of summer through Labor Day now and I suspect traders are happy—it just makes taking stuff home harder and then getting in again in the morning. Not sure that Trump or Korea will give up any male/territorial ground and the better days for something happening is Friday/Saturday–and if not, we think it will intensify into Aug. 21. Possible it could have a build-up and release of tensions like the 1990 Gulf War and there are some interesting cyclical parallels. We’ll do our best to deal with intraday volatility.Continue reading