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Setups for Next Week
With all the volatility this week it may seem that there is a major shift in the trend brewing, but that would mostly be incorrect since most trends—and I will show you which markets I think have good trends—are simply retracing. The monetary policy has not changed, and as long as that is the case, NASDAQ, bonds, crude, gold, and grains are setting up for next week.
Talking Tesla
After a volatile week we’re starting to see some leaders emerge once again. I think Tesla is going to be on the forefront of that leadership and if this end of day signal follows through, we could see higher prices on Monday and possibly into Tuesday.
Today’s bounce changes nothing
Downtrends are far more volatile than uptrends. We saw that today as the early extreme weakness quickly triggered a rally. But does that rally change the downtrend in any meaningful way? Not likely. The macroeconomic trends as well as the price trends indicate the path of least resistance is to the downside.
Sell side activity today for stocks, but that’s not all
True, the stocks sold off today, but not everything was being sold. Let’s look at where some other opportunities may exist.
Which trends are correcting now?
With volatility in treasuries and energies there are pullbacks and bounces that trends traders have been watching closely for entries. Here are the ones in play and how I am setting them up right now, as well as the repeatable process you can put to work tomorrow.





