Hello Everyone,
Quick Note: FOMC Minutes: basically reiterating the continued need for aggressive rate highs
Yield Curve went negative today: 2 Year Yield = 2.97%, 10-Year Yield = 2.93%
Quick Market Comments
: A slight but choppy up day for the indexes (+0.25 - 0.35%) gains on the indexes, except for Small Caps, which lost -0.75%. Dollar strength continues with the US Dollar up another 1/2% and is up nearly 2% for the week! As a result commodities have been absolutely shit canned as well as precious metals. That said, I noted that many commodities and commodity related stocks sport doji hammer like candlestick patterns, which could be used to trigger aggressive long entries with tight stops. The important thing is that a trigger needs to occur and a stop would then be placed.
As far as the SPX today's rally stalled almost perfectly at the 61.8% Fibonacci retracement from the 3946 highs to the 3739 lows.
As far as trade setups: Biotech
, which I highlighted in the July 4th weekend newsletter has done great, but finally succumbed to some profit taking today. Our GLD short from last week proved very profitable as well as the BBW short. SCO the short idea for crude oil has also played out.
As far as new setups, one could look some of the commodities and stocks that sport doji hammer like candlesticks and use the high of the doji for a long trigger: XLE, APA, NUGT, AUY, etc
Matt
