EUR/GBP - BUY - ANALYSISI am do big analysis on EUR/GBP and expect much more bigger UP trend, in long period we can expect much more better results.
Marketbreak
SPX: Flashing cautionary signals (again).My cautious call of 2 weeks ago may have been premature (see link below).
However, we are now seeing additional cautionary signals on the SPX :
1. Two consecutive down days at the beginning of this week;
2. Visible break yesterday on the index (gap down);
3. Reasonable volume on the downside;
4. Traded and closed below SMA10;
5. Tech indicators turning (MACD, RSI, Stock);
6. RSI coming from very overbought levels >85;
7. Treasury yields picking up;
8. Some divergence/topping signs from tech market leaders;
9. High-volume surge in the VIX (please see chart below);
10. VIX broke/closed above two resistance levels in a day.
Current earnings should bring further steam to this market, either for a highly-expected consolidation or for a rebound.
In this context, am warming up to buying downside exposure in one -or multiple- of the following ways:
1. Reducing portfolio risk by taking selective profits/losses;
2. Buying puts on selected stocks ahead of earnings;
3. Shorting the market outright (SPY, QQQ);
4. Buying volatility outright (VXX).
The rest of this week should be interesting and followed closely.
