Last week we highlighted the potential asymmetric risks facing the market pre-election. We warned that the recent corrective rallies highlighted downside risks for the market on a break of measured equality and the 50 day sma. The market broke support and sold off all week as the DXY rallied from equality support. What we didn't […]

Markets appear to be treading water with a bullish bias leading into the all-important US elections - what is NOT being priced into the markets is a contested election result or continued gridlock with split house and senate. The markets appear to be relying heavily on the "hope" of a large stimulus package to continue […]

Last week, the equity markets extended gains in what appears to be a corrective overlapping 3 wave rally of equality (the Russell rallied in an impulsive 5 waves). The DXY also rallied in 3 waves of equality before turning lower confirming that the bigger picture trend remains down. Rates little changed on the week while […]

Primary market trends remain in tact but uncertainty remains. Trump's fiscal negotiation backflip set up a bearish reversal but we didn't get the downside follow through required for a change in trend. The Russell 2000 broke to new cycle highs as expected as the US$ weakened and the risk-on recovery continued. Bonds broke lower as […]

Last week, the equity bulls managed to hold important near term lows and rallied impulsively (as tweeted) before correcting lower later in the week. The bulls remain in control as we look for the risk-on environment to continue. Primary bullish trends remain in tact with impulsive equity market rallies, pinned rates, a weakening US$ and […]