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This is all that matters now…
Market behavior is all about positioning for what is going to happen and we have seen a lot of that today in bonds. However, what is going to move the market is not on the chart right now. It’s not what most traders are considering and it’s happening tomorrow and Thursday.
Let’s Do It Again
On Friday we reviewed a setup in Tesla and if you came into Monday with that analysis you were able to make some solid cash. A similar setup is starting to take shape again and is probably worth watching into Tuesday.
Opportunity in Chaos?
The current news cycle has proven chaotic, but I believe there is opportunity in this, so let’s take a look.
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.






