Weekly Perspectives August 2, 2020 – More Highs 📈

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Weekly Perspectives August 2, 2020 – More Highs 📈

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Hi traders, 

Here is your weekly newsletter — perspectives on trading and financial markets.

Click here for the previous edition.


More Highs 

Quick announcement – I will be off on vacation for a week starting next weekend so there will be no Weekly Outlook video or newsletter next week so enjoy this week’s content and we’ll see you again in a couple of weeks.

So this past week we got a bit of everything:

  • Fed announcement and reaction = check ✅
  • earnings moves = check ✅
  • all-time highs = check (tech sector – XLK) ✅
  • volatility = check ✅

The markets are now firmly under the trance and spell of the Fed.

The markets have been pricing in the outlook of real interest rates and as the Fed has been signaling there are no plans on the horizon for any change in interest rates.

This is significantly bullish for precious metals (and hard assets) as I have been signaling for the past several weeks and this week the crypto space finally joined the party.

In this week’s video I discuss:

  • Why the SPY and DIA are likely to retest all-time highs
  •  Price discovery and how the markets move in broadening formations
  • Understanding price action so you don’t need to listen to others
  • Why traders don’t try to predict price
  • My call on Bitcoin and Ethereum

Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For August 3 – 7, 2020.


US Treasuries: the lessons from March’s market meltdown

Source: Financial Times 


How Robinhood Really Makes Money With No Commission Trades

A couple of weeks ago I shared an article speaking to the dark side of the Robinhood platform.  

Here’s a short podcast from Bloomberg that talks about how brokers like Robinhood are selling their customer order flow and the behind the scenes market makers, shakers, and technologies.  

Interestingly the big takeaway for me from this podcast is that selling order flow isn’t always negative to the customer, in fact, it can often result in better spreads.  

As well the rise of no commission brokers that started late last year may actually be playing a large role in the strong momentum moves we have seen year to date.


Quote I’m Thinking About

The biggest returns come from advantageous divergence. It’s not enough to disagree with conventional wisdom, you have to disagree and be correct.

If you bet with conventional wisdom, you get conventional returns. If you bet against conventional wisdom and you’re wrong, you look like an idiot. If you bet against conventional wisdom and you’re right, you’re a genius.

A lot of people prefer the comfort of a crowd to the responsibility of independent thought.

Source:  Farnam Street


Have a good week all, and see you in a couple of weeks.


Weekly Perspectives August 2, 2020 – More Highs 📈

by editor time to read: 2 min