7/7/2014 6:01:06 AM
Good morning traders,
As we head into our projected peak in the stock market, signals are starting to align. As we always do, here are the charts to make some conclusions with in our trading services.
Let's start with oil:
With our oil and natural gas service, we're always looking at their relationship to see which one we should be trading:
And another concern from oil is the volatility from options activity:
We have seasonality charts for all indices we trade.
Switching over to Market Sentiment:
This neutral peak can be bearish, and it hasn't been this high in a while.
Moving towards money flow, it continues to be bullish but we are seeing a hint of a reversal. If it wasn't in line with our key reversal date approaching, it wouldn't be such a big deal.
Our QQQ Trader indicator, has reached back towards highs. As we've shown, at these levels 1 month returns are zero to -5%.
Also, looking at new highs on the Nasdaq, we see a potential bearish divergence setting up...
On the below chart of bonds and the SPY, we see their relative action at a similar place as the 2007/8 peak.
And looking at qqq and bonds, we see that the relationship is holding up to the bullish side. We'll watch for this to break as a sign that things are changing.
And finally, I'll leave you with a chart of gold oipcr.
I see this reaching an end soon, and we'll be looking for a trade in gold/options soon.
Regards,