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A Summer To Remember

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:

oil Volatility Chart

With our oil and natural gas service, we're always looking at their relationship to see which one we should be trading:

UNG Relative Strength versus USO Spread Chart

And another concern from oil is the volatility from options activity:

USO Seasonality Chart

We have seasonality charts for all indices we trade.

Switching over to Market Sentiment:

AAII % Neutral Chart

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.

Cumulative Equity Money Flows Chart

Our QQQ Trader indicator, has reached back towards highs. As we've shown, at these levels 1 month returns are zero to -5%.

QQQ Trader Primary System Chart

Also, looking at new highs on the Nasdaq, we see a potential bearish divergence setting up...

NASDAQ Yearly New Highs Chart

On the below chart of bonds and the SPY, we see their relative action at a similar place as the 2007/8 peak.

SPY versus Bonds Relative Strength Chart

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.

QQQ Relative Strength versus Bonds Spread Chart

And finally, I'll leave you with a chart of gold oipcr.

GLD Options Open Interest Put/Call Ratio Chart

I see this reaching an end soon, and we'll be looking for a trade in gold/options soon.

Regards,

 

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