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$VIX Uprising – NorthmanTrader

Sven Henrich via Northman Trader As long time readers know I’m a big fan of $VIX technical structures and compression patterns. Often dismissed as non chartable I think we’ve successfully to put that argument to bed a long time ago. Recently in “Key Charts” I again outlined the $VIX as one of the key charts...

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Unspoken Truth – NorthmanTrader

Sven Henrich via Northman Trader We all know it yet the unspoken truth deserves to be said out aloud. You all heard the phrases ‘Don’t fight the Fed’, and ‘ there is no alternative’. Can we be clear what these phrases really mean? They mean people are buying assets at prices they otherwise wouldn’t because...

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Key Charts – NorthmanTrader

Sven Henrich via Northman Trader We’ve just come out of a summer period where nothing seemed to matter with markets relentlessly accelerating high to suddenly everything mattering as we just saw the most aggressive correction off of all time highs in the Nasdaq since the 2000 bubble. A lot of people have written to tweeted...

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Straight Talk: Bear Raid – NorthmanTrader

Sven Henrich via Northman Trader A confluence of factors led to this week’s sell-off in markets. In the lead up to this week’s market top we saw all the classic signs: Weakening participation, highly overbought readings, vast technical extensions, historic valuations accompanied by extreme complacency and bear capitulations. And make no mistake: This sell off...

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Panic Buying – NorthmanTrader

Sven Henrich via Northman Trader The panic buying we’re seeing in $TSLA and $APPL today, following the historic runs into the stock splits effective today, firms my view that we are setting up for something sinister in markets. To be sure we live in strange times, even some bulls are capitulating giving up completely on...

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Tech Signal – NorthmanTrader

Sven Henrich via Northman Trader As bears are capitulating and markets keep making new highs on the heels of yet another dovish speech by Jerome Powell investors continue to chase historic valuations. Nothing has mattered so far, not the imbalances, not the rising $VIX, not the data, not the historic stretches in the charts of...

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Bear Capitulation – NorthmanTrader

Sven Henrich via Northman Trader Relentless squeeze in $SPX and $NDX to ever higher highs and bears are capitulating left, right and center. Short interest at 15 year lows, asset manager index parked north of 100, the complete elimination of down days in August, in short: The perfect bear set up. Imbalances keep building and...

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Imbalances – NorthmanTrader

Sven Henrich via Northman Trader A brief follow up to Reality Check: As indices, but not the market, keep crawling higher on the unprecedented market expansion in select stocks imbalances are building that suggest reversion risk is building. Whether this reversion risk sets up for a buyable dip or a change in market character remains...

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Macro Scoop – NorthmanTrader

Sven Henrich via Northman Trader Happy Saturday everyone, no Straight Talk this weekend as Dan, Guy and I are taking some time off, imagine that. My wife and I are of course glad our kid is back so we’re looking forward to catching up some more with him. In the meantime I had a chance...

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$VIX 46 (Part 2) – NorthmanTrader

Sven Henrich via Northman Trader Our liquidity soaked markets keep beating ever higher as the monetary Praetorian Guard, otherwise known as the Federal Reserve, has dispersed any would be sellers. Some permabulls, all giddy that the Fed has once again bailed them out, are again roaming Twitter mocking bears or anyone with a contrarian view...

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The Program – NorthmanTrader

Sven Henrich via Northman Trader Kill the algos before they kill us. If you haven’t noticed there’s a specific program running through markets this August, it’s not humans making collective price decisions, it’s algos playing ping pong with price in a specific fashion, I call it the gap, ramp and camp program. First note that...

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Straight Talk #13 – NorthmanTrader

Sven Henrich via Northman Trader Good news, bad news and great news. First the good news: The three amigos are back together again, please see the latest edition of Straight Talk below as Guy Adami, Dan Nathan and I are discussing the prospects of the latest stimulus package, the latest in markets including technicals and...

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Bitcoin to 17,000? – NorthmanTrader

Sven Henrich via Northman Trader It’s been a while since I’ve written about Bitcoin and for good reason: Bitcoin was stuck in a consolidation range for 3 months and the question was whether BTC could break out of a larger technical pattern we’ve been tracking which it finally did last week and this breakout is...

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Straight Talk #11 – NorthmanTrader

Sven Henrich via Northman Trader Last week we discussed the importance of the $NDX chart and after another rally to the previous highs $NDX reversed hard for a potential double top and broke its trend off of the March 23 lows. A technical move with potential significant implications upcoming earnings reports from $AAPL and $AMZN...