To Arms in Dixie

https://www.youtube.com/watch?v=R3me6ifiaNY

The sharp rally in the U.S. Dollar has not made a dent in equities thus far, though it likely has placed at least some of the pressure we have seen on precious metals and miners of late.

Going forward, if the DXY (Dollar Index), or the “Dixie,” continues to break higher over $85 from a multi-year bottom (monthly chart, below) it will be interesting to see what effect, if any, a strong Dollar has on other asset classes, including Treasuries. What say you?

In the meantime, UUP is the actively traded ETF for the U.S. Dollar.

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While the S&P and Nasdaq hover near recent highs, the small and micro cap weakness is still prevalent.

We looked at the latter two indices’ 30-minute charts yesterday and last night, and how vulnerable they could be on further weakness.

In fact, part of the reason why this morning’s price action seems to be so subdued may very well be the continued pressure in the small and micro caps.

On the updated 30-minute chart of the Russell 2000 Index’s ETF, note the $114.50 as a “neckline” of sorts. I am keying off this chart throughout the session to see if bulls can recapture it.

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The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.

The bull case is that the Nasdaq has simply been basing under the lower support trendline on that weekly chart, and now we will resume the fierce uptrend. A long setup from a leader like Netflix, seen below on the daily chart, would seem to support this view.

However, the view here is that a split, bifurcated market still cannot be fully embraced until we see more evidence that the many negative underlying divergences are resolving in the bulls’ favor…

Please click here to continue reading

Courtesy of The PPT, here are two ideas to keep in mind as summer winds down.

Both stocks have excellent seasonality scores for the month of September.

See data below.

Please click on image to enlarge 

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Long Ideas on Strength: INVN JD PCLN SUNE TWTR

Short Ideas on Weakness: CVX LVS MGM RAD WAG WYNN

Also note the 30-minute micro cap chart potential top this week. Keep an eye on Wednesday’s lows (arrows) to see if another leg down for this lagging index is imminent.

Drop me your top tickers overnight.

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If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

Enjoy tonight’s video, and enjoy your evening. 

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