News will drive the market today, looking for $ES_F topside 1357, landing zone 1321 $study

Around the Globe

    Asia – CLOSED

  • Shanghai (China) -0.25%
  • Hang Seng (Hong Kong) +0.81%
  • Nikkei (Japan)-0.81%

Europe as of 7:02am EDT

  • DAX (Germany) +0.25%
  • FTSE (UK) +0.09%

Today’s Economic News:


Quite a bit of data to pour over today.  The USA has CPI, NY Empire, Housing Data.. Wow!

Overnight for Europe the GDP numbers came in much stronger than expected, but the ZEWs were a miss that is a mixed picture and is keeping the Eurozone from having a decent rally.

Quote of the day:
It takes too much energy to be against something unless it’s really important. – Madeleine L’Engle


Current Allocations from our room:


Performance Month to Date from our room:


Current Breadth Readings:

Our Featured chart this AM is the Zweig which finally made it to oversold.  While this dip-the-toe-into-the-sub- 40 region usually produces a bounce, it remained 9 days oversold in August. It is signaling to us that  this market is getting ready to rock, we just have to find the beat.  Once that 40 gets crossed to the upside we will begin our Zweig Breadth Countdown.




ES SP500 Futures Comments:


The markets are setting up for a decent gap up today.  There is plenty of news in between the US open that will set today’s direction so one must be prepared for reactions in either direction.  On the upside we think that the down trending upper trendline will offer enough resistance at 1357 to look for a short.  For the downside we have pushed our landing pad a bit lower to 1321 area.  We would like to see some real capitulation, else we think after a few days of bounce we will need to retest the lows.



US Dollar DX Futures Comments:

We like the dollar short here for a few days down to the just below 80 area.  The consistent grind of the rally is bullish and we think after some downside relief that trend should continue.  It is all about news today though.image

TLT Twenty Year Bond EFT Comments:

We think it is about time that TLT did a little gap filling.  We like TLT short from here for a couple of days with price moving back to the 119s.   If Europe continues its un-winding story we see more money coming into the US bonds.  That is not necessarily bad for the US markets, in fact we could see the crowded play squeezing money into equities.  There is only so much room in the boat. image

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