Wednesday, July 20, 2016

Jul 20 - More upside in risk on assets

Volume is a bit weak but price is speaking.  Small caps and tech are leading the way.  My QQQ longs are doing great but unfortunately my XOP are still a bit underwater.  If oil stabilizes as I expect, XOP should catch a bid as we see more push into riskier assets.

The last few days was just consolidation we need to see a steady close

A much smaller pullback than most were expecting which speaks to the pain trade being up.

 XOP flashed a breakdown but has recovered.  These false breakdowns often result in big moves in the other direction.
 USO also slipped below support but is now green.
 QQQ is a beast.
 IBB also has broken up and out.  There could be a lot of upside ahead
 VIX keeps dropping amazingly.  Printing a reversal candle so important to see what happens EOD but the trend in equities is still up regardless of negative divergence in VIX w equities

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