4/13 Recap

Tomorrow morning we kick off bank earnings and you could see notable weakness today in things like JPM. The chart of JPM isn’t the best, but it was the strongest bank during the recent crisis. Along with JPM, we have Wells Fargo, Citi, and Blackrock tomorrow. We’re going to get a big read on many different things relating to the economy and the market will likely have a big reaction either way.

Chart wise, a nice inside day today thus far as the market continues its impressive strength. Just remember rule 1 of any equity you hold is as long as it trades over short term averages like the 8/10 ema it is worth being in, if it dips below you can remain in it, but know that it will be weak for a little. As you can see the SPY has been over the 8 ema, the blue line, for quite a bit now.

What if we zoom out, what do you see? The first chart is the Dollar and the second is the SPY, they’re both weekly charts. The dollar is down 5 weeks in a row and guess what, stocks are up 5 weeks in a row. That’s all you need to know, dollar down, stocks up. Right now the chart of the dollar looks horrible, this could be a prolonged move up for equities if the fed doesn’t do something drastic, and quickly.

Trends

First off with these trends as you can see on the left, these are the ones that are not expired. Someone asked me about that yesterday. I added some more context to the longer term trends today, sending the 1 month and 2 month lists to 20 bullish and 20 bearish names vs the 10 for the shorter timeframes. There just aren’t enough trades in1 week to get much more. Interesting to see BAC pop up this week with most of the other big banks reporting tomorrow. GDX has seen a ton of action this week, but otherwise nothing new emerging. What I see is over the last 2 weeks, big tech is seeing less action and money is starting to flow into other names, unlike what we were seeing a month ago.

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Today’s Unusual Activity & What Stood Out

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