Itsallsotiresome

Itsallsotiresome

Eventually, just not in the short-term. NQ at the daily view. The rotation from growth to cyclical stocks ramped up for the past month. Financials, energy, and industrial were among the most shorted sectors since April. When that rotation happened, those piled up shorts blew up all at once. The NQ did not rise as much (except for Tesla) because tech still had...

Itsallsotiresome

ES at the daily view. Welcome to 2020 where "ridiculous" is now an average Tuesday. The only thing that hasn't changed are permabears complaining every single day. What has changed are the permabulls are now more annoying. The rotation from growth to cyclical definitely blew away shorts. In fact, financials, energy, and industrial were among the most shorted...

Itsallsotiresome

VIX at the daily view. Whelp, there goes that ramp up from yesterday. VIX broke that small uptrend, but it wasn't much from the get go. There is a bullish RSI divergence forming since November 11th. It wasn't until today that the divergence is actually noticeable. This RSI divergence might kick start a ramp up or uptrend in volatility. That said, I'm only going...

Itsallsotiresome

NQ at the daily. As suspected, NQ will be lagging since the rotation from growth to cyclical stocks continue. How long will this take? Longer than people expect. Will NQ breakout? Eventually. Market breadth has to increase even more and that will drag the NQ higher. Until then, I am expecting some sort of decent pullback for the indices. Most likely not this...

Itsallsotiresome

ES at the daily view. The ES is breaking the Hodor Line (orange line) again. I knew it was just a matter of time before that resistance becomes easier to pass through. Currently, liquidity is high enough to go scuba diving in, so major supports will likely prevent any sort of large crash. I counted about 12 supports below the current price - just to get to 3180....

Itsallsotiresome

VIX at the daily view. The VIX is still doing its dance. Since liquidity is still high enough to hide a submarine, the VIX is making some "bunny hops" to keep itself alive. The purpose of this is to keep it alive long enough for liquidity to dry up again. After all, liquidity tends to ebb and flow in cycles. That said, there is a subtle uptrend starting to form...

Itsallsotiresome Updated 

VIX at the daily view. And we are back to the volatility dance once again. The VIX is being suppressed due to higher liquidity levels. Meaning, there are still buyers below but waiting for prices to come down. In addition, hedge funds were letting go of their hedges right after election. The post-election rally is actually one of the more classical and easier...

Itsallsotiresome

NQ at the daily. The NQ transitioned into a new price structure. However, the structure is still pretty vague compared to the last trend. For now, the NQ seems to be trapped in a wedge . There is a definite rotation between tech and non-tech sectors. Investors remain overall bullish in tech and bearish in non-tech. As a result, non-tech sectors like financials...

Itsallsotiresome

ES at the daily view. ES seems like that it is about to fully transition into a new price structure. The dotted green line was the old trend line support from April to September. The orange line is a historical resistance that has its origins from 2009. I call it the "Hodor Line." The line held the door for a decade now. The ES has been trying to decide between...

Itsallsotiresome Updated 

ES at the daily view. Whelp, I told you that "Wolverine" is back. That's the channel that I named. I said NQ's downtrend was broken and we are heading back into an uptrend. I also said that we won't even close a day below 3250 or 3300 any time soon. I get messages from permabears that the markets will crash at any time. Election volatility or some bad headline...

Itsallsotiresome Updated 

VIX at the daily view. Whelp, I said shorting UVXY would be easier than longing it because UVXY and VXX are based on the VIX futures (not spot VIX). I get messages from permabears that say they shouldn't worry about backwardation and the premium wouldn't eat the profits that much. Election volatility will cover the outrageous premium or some bad headline will...

Itsallsotiresome

NQ at the daily view. Whelp, I told you that "Big Daddy Sunshine" is back. That's the channel that I named. I said NQ's downtrend was broken and we are heading back into an uptrend. I also said that we won't even close a day below 10800 any time soon. I get messages from permabears that the markets will crash at any time. Election volatility or some bad headline...

Itsallsotiresome Updated 

ES at the daily view. So the ES close back into its old upward channel again which I call "Wolverine" from X-Men. Because I ran out of goofy names in my head and this channel just keeps coming back. Liquidity levels made a strong comeback last week and now we are seeing higher lows. An IHS pattern is forming - albeit a messy right shoulder. That doesn't mean...

Itsallsotiresome Updated 

NQ at the daily view. So the NQ close back into its old upward channel again which I call "Big Daddy Sunshine." Because I ran out of goofy names in my head. Liquidity levels made a strong comeback last week and now we are seeing higher lows. An IHS pattern is forming - albeit a messy right shoulder. That doesn't mean we won't get pullbacks along the way....

Itsallsotiresome

VIX at the daily view. As stated before, the VIX is just hovering between the mid-20s to low 30s. This is due to election volatility being integrated into the VIX. Basically, volatility is ready expected during election season. This backwardation tends to eat up the profits especially if you're long on UVXY or VIX futures. It's why UVXY and VXX slid into the...

Itsallsotiresome

The DXY at the daily view. It turns out the DXY just broke the RSI supports. Upon further examination, there were FOREX pairs that indicated that the DXY was primed for a bigger pullback. USDJPY and EURUSD were the biggest clues. The reason why the dollar is weakening is primarily due to the Euro strengthening. As a result a trend line and a RSI resistance were...

Itsallsotiresome Updated 

DXY at the daily view. The dollar strength bouncing shouldn't be a surprise at all. The DXY has been bouncing off the RSI uptrend support since early August. However, the dollar did NOT close September above that green dashed line which was its 11-year-old channel. That doesn't bode too well for the dollar strength. That said, the DXY is probably not done with...

Itsallsotiresome

Silver at the weekly view. With all the noise in silver, it's best to see it at the weekly view. Silver has entered into a downward channel. The blue line is the weekly uptrend support. Silver also has a weekly RSI resistance that will take a while to breakthrough. With the dollar strength uptrending in RSI, silver's breakout will be delayed. Long-term wise,...