Remain calm.
The reversal lower that I projected and drew in on July 4th, alerted you to on July 7th in my weekly email and have been discussing for the past month has officially begun. The timing of the reversal projection/confirmation with the Fed cutting rates on Wednesday and Trump tweeting Thursday was interesting, to say the least. Did someone forward my emails to Powell and Trump? Insert sound track from The Twilight Zone.
If you are trading these broader market reversal projections you are making BIG$$$ and seriously outperforming. btw…GBTC has been a nice hedge…I am still long and buying dips…it’s volatile…be careful. See attached chart.
Grayscale Bitcoin Trust (GBTC) daily
I have lowered price and extended time (SPY 282/283 early September) on the next projected reversal zone. It looks like we are in for another four to six weeks of chopping lower with higher volatility consolidating gains from the closing low on May 31st. Please see the attached chart of SPY for my new notes (in yellow), projections and price channels. Current price action looks to be consistent with digesting recent gains and preparing for longer term expansion in to 2020.
SPDR’s S&P 500 Trust Series ETF (SPY) daily
Remember, price action tries to fool as many as possible, the media usually gets it wrong and economists are looking at data that keeps getting adjusted.
As I noted last Sunday, it was a good time to take some profits. No worries as there will definitely be some daily triple point up days to either harvest gains or put on short/inverse positions, if you are so inclined. See the descending brown channel I have drawn in.
I have also attached a chart of TVIX, a 2X ETN that measures implied volatility. Please note how volatility spikes with crosses of descending resistance which lines up with broader market dips. Pretty cool…right? It just crossed again on Thursday…hmmm…another sign of short term broader market weakness? I think so.
VelocityShares Daily 2X VIX Short Term ETN (TVIX) daily
So, short term (weeks) dumping leading to longer term (months) expansion. That’s how I see it anyway.
One more thing. I read an article this week about YETI Holdings Inc (YETI). The analyst who wrote it said he saw a cup and handle pattern with a perfect entry at $34.37 and he was really excited about a new dog bed they were coming out with. Are you kidding me? This is the kind of garbage that drives me nuts! See chart attached. My entry idea was $27 and my partial exit idea was $36 (see green and red arrows).
YETI Holdings Inc (YETI) daily
OK, two more things. Pinterest Inc (PINS) gapped up 20% today. Consider taking partial profits. See attached chart. KaChing.
Pinterest Inc (PINS) daily
Sorry, I couldn’t resist another chart. For those of you that are into charting and energy drinks, check out Monster Beverage Corporation (MNST). I just love this chart. Put it on your calendar for later this year.
Monster Beverage Corporation (MNST) weekly
By the way, feel free to forward my emails to friends, family or clients. New subscriptions have been closed as I am working on changing the look of my web site…I really don’t like the way it looks and I mainly use it for archiving. Also, thanks for your support and I hope my charting helps you. As usual, these are my opinions and you should do your own due diligence.
I am traveling to Hawaii this weekend so I’m writing this a little earlier than normal. I will be checking the market daily while I am there although I probably won’t be getting up at 3:30 am to watch the market open. Obviously, no entry ideas for a while as broader market will likely bring most everything down with it and we might as well wait until things are on sale again.
Aloha and Gone Surfing,
Don