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...
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...
Sven Henrich via Northman Trader Markets down two weeks in a row right before another Fed meeting and quad witch options expiration next week.In this week’s episode of Straight Talk I’m discussing the prospect of more volatility to come into October and November, but also the potential for another rally. The dollar, $VIX, the Nasdaq,...
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...
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...
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...
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...
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...
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...
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...
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...
Sven Henrich via Northman Trader The program is back and yesterday’s one day down day appears already long forgotten, but I want to follow up on a chart discussion I started yesterday with $OEX and continue here with the $DJIA. Why? Because it’s all correlated and connected. The trend lines I mentioned in $OEX finds...
Sven Henrich via Northman Trader Last week the question was whether hitting the February gap had any relevance. Other than a bit back and forth it did not and market continued higher according to the program that is currently in place. But a slight squeeze above the February gap alone is not enough to declare...
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...
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...
Sven Henrich via Northman Trader I had the pleasure of speaking with Raoul Pal of RealVision a few weeks ago. The interview was recorded in mid July and it was an opportunity have a heart to heart discussion about the key big issues all of us face on some level or another. We all find...
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...
Sven Henrich via Northman Trader As $SPX is entering the February gap zone into 3300 (an area we’ve been mentioning for weeks in Straight Talk) and Nasdaq is again making new all time highs as investors keep relentless chasing into high cap tech, it may be worth pointing out that something’s rotten in the state...
Sven Henrich via Northman Trader With a furious rally in the last hour (when else?) markets closed the month of July slightly above the June highs bringing the S&P 500 to green on the year. This following GDP prints of -5% and – 32.9% for Q1 and Q2 respectively. Bears may be rightfully asked: If...
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...