NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price held the Monday range until about 6:30am, then it made new record highs. As we approach the open, the market is sustaining the gains. At 8:30am Housing Starts and Building Permits data was issued.
Also on the docket today we have Industrial Production at 9:15am and a 4-week T-bill auction at 11:30am.
Yesterday we printed a normal variation up. There was a morning rally, then two way trade ensued.
Heading into today my primary expectation is for a short squeeze higher, up to 5722.75 before two way trade ensues.
Hypo 2 strong buyers sustain trade above 5722.75 setting up a trend day.
Hypo 3 sellers push into the overnight inventory and close the gap down to 5701 before two way trade ensues.
NASDAQ futures are coming into the third week of May flat after an overnight session featuring normal range and volume. Price made new record highs during Globex trade, but returned to flat soon after.
The economic calendar is light all week and today is no different. At 10am we have the Housing Market Index, at 11:30 the US Treasury is auctioning off 3- and 6-month T-bills, $39B and $33B respectively. Also at 4pm we have Long-term TIC flows.
Last week markets worked sideways more-or-less, with the NASDAQ on a slight drift higher. The performance of each major index is shown below:
On Friday the NASDAQ printed a neutral extreme up. After a choppy initial balance [first hour of trade] sellers briefly pushed price range extension down, but the market caught a bid before closing the overnight gap and traversed the entire daily range eventually close at record highs.
Heading into today my primary expectation is for sellers to work down through overnight low 5683.50 and trade down to 5676.75 before two way trade ensues.
Hypo 2 buyers press up through overnight high 5700.25 and explore open air.
Hypo 3 stronger sellers press down to 5670 before two way, balance trade ensues.
Sun May 14, 2017 11:17am ESTComments Off on Still Bullish Heading into May Option Expiration
Greetings and happy Mother’s Day from the hard working scientists at iBankCoin laboratory!
Despite being a subject matter that many find uninteresting, and perhaps because it is presented every.single.Sunday (131 weeks running) in a lighthearted manner, another overlooked Exodus Strategy Session has been prepared. At the core of it is a live quantitative trading model which serves our team quite well when it comes time to trade.
The preparations are done Sunday, with a best possible effort, in order to A. ensure we have the proper information in place to make objective decisions and B. instill the type of confidence that comes from creating your own working trading model.
This week is no different in that we have humbly prepared another Sunday report. The only difference is we have a live signal going into next week. It is the same signal that triggered last Sunday which called for a calm, sideways drift. A marking of time.
While the world was going bananas over our authoritarian leader, the model called the market right again. No mayhem, no May punishment for investors. Smooth sailing last week was, unless you were heavily positioned in bank stocks.
Therein lies the beauty of a quantitative and objective approach to financial markets. They do not care about your latest freakout, and if your emotional conduct is being factored into how you engage the market, you are setting yourself up for bitter failure.
Which is fine. Maybe you need to fail, not that it is something the good folks at iBC labs with for you. We create tools that can empower you to take control of your investment decisions in an objective way. And while the toolkit may seem esoteric, we will do everything we can to make it more accessible for you, including live one-on-one support.
Yes, you heard right, you could have a personal discussion with yours truly about the software. And if you have already had a phone demo, and you are still struggling to properly deploy an investing/trading approach that works for you, let’s circle back around at see if we can make it fit your workflow.
In summary, the the sell in May axiom has been a misguided story passed down by old men so far, according to 2017 performance. However, the idea is not to sell before May, or after May, but in May. So conditions could change during/after option expiration’s week. Do you have the models in place to make that important assertion?
Get at me.
And again, Happy Mother’s Day. If there is one day of the entire year your belligerent ass could project stability it is today. Women tend to worry way to much. Ease their burden. Barbecue some local poultry, hopefully birds that lived a good life, in nature. Or at the least, were allowed to roam open pastures.
Thursday morning shares of Sangamo Therapeutics, a company that tinkers with DNA in pursuit of immortality [ticker: $SGMO] opened up more than +50% after announcing a strategic collaboration with Pfizer.
Let me put this into hip-hop terms so you social media types can understand it. Pfizer has all that pharmaceutical money—$19.45 billion dollars in cash, according to Exodus.
Pfizer generated $14.08 billion in cash flow over the last 12 months. They are the third biggest cash generator in the drug dealing game.
Pfizer is the Dr. Dre of selling drugs to the masses, if compared to the 2017 Forbes hip-hop top earning artists:
Forbes List Of World's Highest earning Rappers for 2017
1. Diddy, $820M 2. Jay Z, $810M 3. Dr. Dre, $740M 4. Birdman, $110M 5. Drake, $90M pic.twitter.com/Tn1bCtiqxW
— Culture For Us By Us (@CultureFUBU) May 11, 2017
If you were to say, take a lesser know hip-hop artist, like a scrappy white dude from Detroit, and put him on a track with a hip-hop legend, instantly the outsider is legitimized.
The scenario described above is what has fueled a two-day rally in $SGMO that spiked shares up by more than +85%. On Friday other CRISPR names, which were discussed in these hallowed halls earlier this year, began popping alongside Sangamo.
Full Disclosure: The writer currently owns $SGMO and other CRISPR plays
CRISPR is an acronym that stands for clustered regularly interspaced short palindromic repeats which basically means they can chop up and rebind living DNA. By doing so they might be able to cure major diseases—CURE—not treat.
Cures are worth way more than treatments. This is the extent of my understanding of the biotechnology. It was presented to me by my top scientist and since then the science has been affirmed, without provocation, by the most intelligent medical professional I know. It was also discussed by the one the the Exodus greats, JungleeGirl.
There was a major battle between UC Berkeley and MIT over who owns patents on the use of CRISPR. As of today, the east coast thugs at MIT own the patented rights. Seeing two well-known institutions caught up in a feverish dispute really makes it seem like there is a fire somewhere, behind all the smoke.
Then I began applying some analogous techniques passed down by the Option Addict, and noticed the entire space looked aligned with discouragement. If that assumption holds true, then the moves happening this second week of the fifth month under our new authoritarian regime could be just the beginning.
This is my top theme trade of 2017. Everything else I own falls into five categories:
CRISPR stocks are catching a bid across the board as investors voted ‘yes’ for an immortality elixir, the biggest attempt yet to alter what many consider to be fate.
Fri May 12, 2017 8:47am ESTComments Off on After A Brief Loose Moment, NASDAQ Stabilized, Friday Has Markings of A Rally
NASDAQ futures are coming into Friday with a slight gap down after an overnight session featuring normal range and volume. Price was contained to the upper half of Thursday’s range during extended trade. At 8:30am Consumer Price Index and Advance Retail Sales data both came out worse than expected.
Also on the docket today we have the preliminary May reading of Confidence by the University of Michigan at 10am followed by the Baker Hughes rig count at 1pm.
Yesterday we printed a neutral extreme up. The day began with a gap down and sellers pushing down near the Monday/weekly lows. Down here, in the late morning, the market found a responsive bid. We spent the rest of the day rallying, with price stalling just 1-tick shy of the overnight gap.
Heading into today my primary expectation is for buyers to work into the overnight inventory and take out overnight high 5672.50 then continue higher to close the gap at 5675. Look for sellers up at 5677.25 and two way trade to ensue.
Hypo 2 stronger buyers press to new weekly high, up to 5688.50 then sustain trade above it, setting up a rally into the weekend.
Hypo 3 sellers work down through overnight low 5656.50 triggering a liquidation down to 5637.25 before two way trade ensues.
Thu May 11, 2017 9:03am ESTComments Off on NASDAQ Seeks and Finds A Bid During Extended Trade
NASDAQ futures are coming into Thursday gap down after an overnight session featuring normal range and volume. Price worked lower overnight, in a one-way auction lower, trading down to the open gap from Monday’s close before turning higher. At 8:30am Initial/Continuing jobless claims data was better than expected.
There are no other economic events scheduled for today.
Yesterday we printed a neutral day. A neutral day the day after a normal day, interesting. Price opened gap up and sellers pushed off the open, ultimately stalling before filling the gap down at 5655 which was the primary hypothesis from Wednesday morning’s trading report. Price then traversed the entire daily range to make a new high of day, going neutral, before settling into two-way trade.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5675. Action gets choppy from here, but we manage to take out overnight high 5676.50 before it is all said and done.
Hypo 2 we push down through overnight low 5655 and find a bid just below, at 5652.25 before two way trade ensues.
Hypo 3 strong sellers press down to 5639.50 before two way trade ensues.
Wed May 10, 2017 8:56am ESTComments Off on Chaos and Confusion Keep The NASDAQ Bid Up into Wednesday
NASDAQ futures are coming into Wednesday flat after an overnight session featuring normal range and volume. Price was seen treading water overnight. We held the Tuesday range without much volatility present. At 7am MBA Mortgage Applications came out better than last week.
Also on the economic docket today we have crude oil inventories at 10:30am, the US Treasury is auctioning off $23B worth of 10-year Notes at 1pm, and there is a Monthly Budget Statement at 2pm.
Yesterday the NASDAQ printed a quite rare normal day which is anything but normal. According to my (needs to be updated) study, normal days only occur 5.66% of the time. The day began with a gap up beyond the Monday range. Then a strong rally pushed through, one that fizzled out a few ticks ahead of our measured move target. The dynamic morning action set a wide initial balance and we spent the rest of the day trading inside it. Investors were not initiating fresh risk for the rest of the day, as if they were expecting news.
Heading into today my primary expectation is for sellers to push down through overnight low 5667.75 and close the gap down to 5655. Look for buyers down at 5652.50 and two way trade to ensue.
Hypo 2 buyers work up through overnight high 5682.25 and probe all-time highs at 5687.75. Open air above, rally ensues.
Hypo 3 stronger sellers push down to 5639.25 before two way trade ensues.
Baby steps. Now that he had completed a successful test of the system, he began an aggressive tweet campaign of the fake news variety.
Bear in mind, all the tweets above were being sent before he uploaded a profile photo. So around noon Tuesday, after a very regal, very Jeff Gundlach kind of morning, it looks like he tried to set his profile picture but instead sent a blank tweet with just his portrait:
Since then he has successfully loaded a kind of blurry outdoors bust and resumed sending out his messages critical of the media.
To see someone so powerful reduced by the obscure nature of Twitter is everything right now. He is so bad at Twitter, and it doesn’t even matter because he is lording over the bond markets. The account has over 12k followers so far.
This is the feel good story of 2017. Everyone is losing their minds over politics and Jeff Gundlach is out here struggling onto Twitter.
Tue May 9, 2017 9:20am ESTComments Off on NASDAQ Logs Updated with Tuesday Trading Levels And Events
NASDAQ futures are coming into Tuesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, slowly and nonstop, positioning the market to new all-time highs as we approach cash open.
The economic calendar is light today. We have Wholesale Inventories at 10am, a 4-week T-bill auction at 11:30am, and a 3-year Note auction at 1pm.
Yesterday we printed a normal variation up. The week began flat and we spent the day treading water with a slight upward drift.
Heading into today my primary expectation is for buyers to work higher early on, probing the open air above. Look for sellers up at 5688.50 and two way trade to ensue.
Hypo 2 sellers work into the overnight inventory and close the gap down to 5655 then continue lower, down through overnight low 5650.75. Look for buyers down at 5648 and two way trade to ensue.
Hypo 3 strong sellers press down to 5621.50 before two way trade ensues.
Sun May 7, 2017 12:30pm ESTComments Off on WE’RE STILL BULLISH HERE
Greetings from the misty mountaintops of the Great Smokey Mountains friends!
Despite heavy rains and high winds closing many of the roads in the region, the team of botanists and scientists at iBankCoin labs have successfully reached our research facility high atop Hill 236. The observation deck is above the cloudline and offers a serenity to the destruction below.
The same can be said about the stock market. While index prices climb to great heights, there are casualties below. Like an old tree meeting its fate, natural forces have eviscerated names in the energy and biotechnology space. While the action is pervasive, it is our opinion that the destruction will be contained.
Deep inside the laboratory database, IndexModel is churning out a signal that hasn’t been seen since late-February. It tells a story of tranquility next week. The computers are forecasting clear skies can calm winds—a calm after the very brief storm, if you will.
Also, the bullish signal issued by the algorithms inside Exodus extends its cycle through end-of-day Monday. The signal has been a success so far, the performance of each major index since the call is shown below:
As you can see, anyone who went long equities when the software advised it is earnings gains. BRILLIANT!
While the headlines are flooded with outrage over our new authoritarian political regime, it becomes paramount that we continue to run our investment strategy and business without bias. A sure way to lose your objective mind is to become disturbed by information. Remember, the stock market is not out to get you. It is simply the net representation of all human/robotic interactions with our free markets. The information is presented as numbers. Sometimes these numbers are plotted as lines and bars. A bit deeper into the analysis and you are using candles. Nevertheless, it is simply information.
The same goes for political happenings. Remaining engaged is a good citizen’s responsibility, and if something genuinely affects your endeavors, then take action. However, when you allow these political things to affect you emotionally, they are winning. You are now approaching every task with a weaker mind.
The rain may be plentiful today, but soon the skies will open and the sun will shine on the loamy soils of America, blessing out fields with hearty crops. With a bit of work, there will be a chicken in every pot, and a loaf of break on every table. If you simply cannot work, for mental reasons, it is best you make you head west. The hobo lifestyle is generally accepted in California city centers. As for the south, everything they’ve said about southern hospitality is true. The locals have been incredibly kind to our research staff.
Signals are bullish heading into the second week of scary May. Behave accordingly.
Distinguished members of Exodus, it is with humility and a refreshed mountain mind that the 130th Edition of Strategy Session was prepared. It is live, go check it out now!
