All the models have been updated, the algorithmic signals tracked and accounted for, and there is little to suggests a change coming for the markets. Instead the research suggests a continued drift of the calm and upward variety.
We have an FOMC rate decision Wednesday afternoon, but 97% of participants are priced for no change. Almost everyone is certain, through all the Fed-speak, that the FOMC is a predicable organization. Pair that with a decent start to earnings season and you have little reason for change.
The last week of July looks like another snooze-fest, perhaps best suited for chasing the narrowing pockets of momentum that are likely to show up, if only for overnight holds.
I may have jumped the gun late last week with my shorts. I do not believe in Starbucks and their China campaign. It is bound to fail as frauds and gross water taint their brand. So I shorted SBUX into earnings which is so far a losing proposition. I also took a position in the triple-lindy-inverse China ETF YANG. Both of these positions are subject to liquidation next week, given the model signals being generated.
As always, TBD.
Exodus members, the 89th Strategy Session has been published, go check it out!
If you enjoy the content at iBankCoin, please follow us on Twitter
If you are a buyer into the election, would you be selling the week of the DNC conventions?
Probably not.
I like the shorts you have on. You are a way better trader than I am, no doubt. I wonder what percentage of investors know how much tomfoolery is going on in China?
not sure, but it only matters when it does and right now, it seems, it doesn’t
So you would wait to short until after dem convention?..what about shorting Appl earnings
Thoughts on oil and interest rates