Are You Enjoying The Trade War?

Short With Impunity
May 13, 2019
Open Office Hours Recording
May 16, 2019
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Are You Enjoying The Trade War?

The markets have had a tumultuous few days with investors and traders transfixed to each headline coming out of China and the White House.

Even the recent rise in cryptos have been attributed to Chinese traders rushing to get their Yuans denominated into BTC.

Riddle me this geniuses – Bitcoin was trading at $4210 just over 2 months ago when we first recommended buying it, why weren’t those same Chinese traders buying it then for a ~$4000 premium?

The reason is that at this point in the Bitcoin cycle, it’s simply trend/herd following and momentum strategies getting into the crypto space.

Anyways back to the main point, no one knows how or when tariff talks will conclude so we’re left with a lot of uncertainty and speculation as reflected in the price of the indices.

SPY and QQQ reclaimed their quarterly opens with IWM just a hair away.

This leaves the charts quite conflicted as we have SPY and QQQ trading above the weekly (purple) and quarterly (blue) opens but still red on the month (orange).

SPY – D – Weekly and Quarterly Green / Monthly Red


It’s a quandary I posed in the Weekly Outlook Video – how do we resolve this timeframe conflict when you are sandwiched in between the major timeframes?

The consequence of this timeframe conflict results in a lot of choppy price action and head fakes as we the market does what it does best and that is stop people out via the process of price discovery.

Stay agile and light-footed and as I mentioned in the Weekly Video ask yourself the question, in this market environment would you rather be a scout or a soldier?

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Are You Enjoying The Trade War?

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