Market Musing 6-5-2018, Low Volatility Trading, Bitcoin range bound
Topics for Indianapolis Traders:
Bob Shenberger - Markets Trends
Ken Yamasaki - BPI and RSI
George Crawford - Market Musing
1. Low Volatility: VIX < 13
US Markets finally break out to the upside after being range bound for 3 weeks. Dollar has dropped after reaching the $95 target which good for the markets. Trump Early Jobs Tweet help propel the market higher. Upside target could be between 2760-2780 in the /ES Futures. Potential tailwinds for the next two week are FOMC Rate Hike on 6/13/2018, /ES Future Contract Rollover (8-15) and of course increasing rate hikes in10 Year Treasuries. Enjoy the ride, but tighten your stops, take profits and redo your hedges. Read the Cherry Picks Newsletter as Dr. Data focuses on hedging strategies to avoid the inevitable dips.
2. E-currencies vs US Dollar:
Bitcoin is range bound between $7000-$10,000. 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 hit it’s upside target of $95 and dropped.
https://www.coinbase.com/charts?locale=en-US
3. FOMC Rate Hike:
The US Markets are anticipating a Rate Hike on /13/2018. Probabilities are currently at 93.8% for a Quarterpoint rate hike. Industries sensitive to Rates like Real Estate and Utilities could drop.
http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
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.com
https://s3.amazonaws.com/cherry-picks-s3-bucket-newsletter/live/18_06_05_tastytrade_Research.pdf?mc_cid=4d0213cd34&mc_eid=e9e24bad07
5. Trump Trades?:
I eliminated this section earlier this year. However Trump tweets continue to affect the market. On Friday, his tweet on unemployment jobs data about a an hour before announcement caused the market to push to new highs in the RUT and QQQ. /ES Future are continuing to rise. If you think I should included then in this weekly musing let me know.
6. TRADE Log: VIX < 13, Low Volatility
- Long GOLD, BITCOIN
- Broken Wing Butterfly, Dynamic Iron Condors
- Calendars, Diagonals and Debit Spreads
7. Video
Theotrade: Is This Rally for Real?