Topics for Indianapolis Trading Group:
Bob Shenberger - Markets Trends
Ken Yamasaki - BPI and RSI
George Crawford - Market Musing
1. High Volatility!: VIX > 15
Market Unchanged after Iran Nuclear Deal Exit. Unexpected Tweets, Strong Dollar Rise and 10 Year Interest Rate near 3% are not good for the US Markets. This year the /ES Futures has bounced off the 200 DMA 4 times. (Red line in chart). However, we are in a wedge pattern (Light Blue Dotted lines.) Wonder if price finally breakouts to the upside or downside. Keep your hedges in case price finally drops: Risk Twist Spreads for the Quarterly Hedge, Dr Ted Nukes SPX Put Ratio for a 3 week hedge and 2v4 Week RUT calendar for 6-10 day hedge, and SPY, IWM, QQQ Long Puts for a few days hedge.
2. E-currencies vs US Dollar:
Bitcoin is holding the $9000 level. In spite of Buffett, Gates and Monger panning Bitcoin, Cryptos are here to stay. The other cryptos Litecoin, Ethereum, EOS and Steem are following suit. This is a trader’s environment, where you can buy or sell a small positions and take profits quickly. Are you mining cryptos in private wallets yet? US Dollar is still rallying up in anticipation of 4 more Fed Rate Hikes. Upside target is $95.
https://www.coinbase.com/charts?locale=en-US
3. US 10 Year Treasuries:
Interest Rates approaching 3% again. The yield curve is flattening and could go inverted. In the past, this has been an early sign for recession and market drop. Perhaps this time will be different…...
4. Cherry Picks Newsletter:
Tasty Trade Researchers publish an awesome weekly newsletter every Tuesday. Check out the link below. If this blog sounds like gibberish, watch "Where do I start 101" free education series on Tastytrade.
https://s3.amazonaws.com/cherry-picks-s3-bucket-newsletter/live/18_05_08_tastytrade_Research.pdf?mc_cid=96e3cf2989&mc_eid=e9e24bad07
5. TRADE Log: VIX > 15 High Volatility Trades
- Long GOLD, BITCOIN
- Jade Lizards, Broken Wing Butterfly, Dynamic Iron Condors
- Jade Lizard Adjustment Case Study
Theotrade - Doc Severson: Flip the Iron Condor in Today's Market
