Unholy Alliance
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Unholy Alliance

Sven Henrich via Northman Trader Some things can’t be proven, but they can be observed. Correlation is not necessarily causation, but when the evidence keeps mounting so does credulity. And the cumulative evidence increasingly points to an unholy alliance between Donald Trump and the US Federal Reserve with the Fed succumbing to political pressure and...

Ticking Time Bomb
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Ticking Time Bomb

Sven Henrich via Northman Trader I’m of the long standing view that Fed chairs have one prime responsibility above all others: Keeping confidence up, and if it requires to sweet talk problems then that’s what it takes. The often classic quote by Ben Bernanke of “subprime is contained” right before it blew up in everybody’s face...

Crumbling
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Crumbling

Sven Henrich via Northman Trader The rally is crumbling underneath while the bid remains persistent and dips are shallow to non existent. I recently already talked about problems sighted with this rally, but want to highlight another notable aggressive divergence that is taking place underneath markets, a trend visibly similar to the lead up to...

Problems Sighted
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Problems Sighted

Sven Henrich via Northman Trader As the 3 main indices have made multiple new highs in recent days and weeks it may be worth to keep taps on the health of this rally. Why? Because for rallies to be sustainable you want to see rallies show supporting signals. This rally doesn’t. It’s fraught with problems...

The Day of Reckoning
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The Day of Reckoning

Sven Henrich via Northman Trader Well, they’ve done it again. By “they” I of course mean the US Federal Reverse and all the other central banks combined. Synchronized global easing it is called and the once again giant inflows of artificial liquidity are dominating the price action in markets irrespective what’s going on with earnings...

Megadeath
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Megadeath

Sven Henrich via Northman Trader Reports of the demise of the Megaphone may be greatly exaggerated. Last week $SPX exceeded the upper trend line of the Megaphone pattern and calls of the pattern’s death have been plentiful since then. But is the pattern truly invalidated? Since the summer I’ve state clearly: For bulls to convince...

Something Smells
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Something Smells

Sven Henrich via Northman Trader New highs every day or so now. Investors are chasing the new highs, the president celebrates on twitter almost every day. Things are great. Melt-up talk is the rage. Hate to be the seemingly lone voice of caution here, but something smells. Look, I get narratives are changing all the...

Melt-Up
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Melt-Up

Sven Henrich via Northman Trader Lots of chatter about a coming melt-up coming in stocks. And why not? If fundamentals or earnings growth no longer matter and markets are drowning again in artificial central bank liquidity may as well forego any valuation or fundamental discussion. Yet as we speak markets are getting to key historical...

BreakOut Fake-Out?
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BreakOut Fake-Out?

Sven Henrich via Northman Trader The Fed cut rates, the ECB officially launched QE, and a parade of administration officials touted progress on the ever elusive China trade deal for the 100th time and voila: Markets breaking out to new highs. But is the breakout a fake out? Let’s explore some uncomfortable facts, charts and...

Launch Failure
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Launch Failure

Sven Henrich via Northman Trader Well, I hope it was all worth it. What was? The Fed whoring itself out to market pressure once again of course. Throwing in that totally unnecessary 3rd rate cut. But they have to keep appeasing the beast they have created. “Hawkish rate cut” was the initial take by many news...

Magic Show
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Magic Show

Sven Henrich via Northman Trader It’s that time again, the magic levitation show, but this one is a peculiar one. I talked a bit about it in Zombieland, but the continuation on the same path this week ahead of the Fed meeting is actually getting quite embarrassing as all pretense that markets are anything but...

Zombieland
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Zombieland

Sven Henrich via Northman Trader Bulls taking victory laps, bears crying, new highs on Friday in some sectors and charts settling the US stock market near a historically high 145% market cap to GDP.What’s it mean? Nothing as of yet from my perch. It’s what happens next week and following the Fed’s 3rd rate cut...

Intervention
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Intervention

Sven Henrich via Northman Trader The Fed has gone into full intervention mode. Not only into full intervention mode, but accelerated intervention mode. Not just a little “mid cycle adjustment” but full bore daily interventions to the tune of dozens of billions of dollars every single day. What’s the crisis? After all we live in...

Gold Bull Part II
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Gold Bull Part II

Sven Henrich via Northman Trader I’ve received a lot of question on gold ($GLD) recently, hence time for an update on Gold. Remember big patterns take time to build and it takes patience to see these patterns come to fruition, although sometimes one does get instant gratification 😉Case in point: On May 21 in Gold...

State of Markets
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State of Markets

Sven Henrich via Northman Trader No new highs, no new lows, lots of chop and still no decisions on anything. New highs or not, trade deal or not, hard Brexit or not, the list goes on and on. Bulls remain undeterred and confident that an ever more aggressive and interventionist Fed will bring the ship...

$VIX Crush
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$VIX Crush

Sven Henrich via Northman Trader Oh look, the $VIX is getting crushed again. Given all that is going on globally one may be inclined to express surprise, but it really isn’t a surprise. See there’s this monthly program running through markets and it, more of than not, crushes the $VIX with regularity during its special...

Control
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Control

Sven Henrich via Northman Trader Let’s keep it simple shall we: 2019 remains a battle for control. The forces of intervention want to “extend the business cycle” as Jerome Powell likes to frame it by any means necessary and, as I outlined yesterday (Beginning of the End), they are throwing the kitchen sink at it....

The Beginning of the End
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The Beginning of the End

Sven Henrich via Northman Trader They sure are trying their best. To do what? To goose markets higher. It’s been quite the spectacle all year, but this Friday sure took the cake. The entire week had been a giant jerk fest of sudden rips and dips as headline chasing algos were ripping through support and...

Technical SetUp: $SPX
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Technical SetUp: $SPX

Sven Henrich via Northman Trader Welcome to KISS & Technical Set-Ups. In this section of the site we post examples of Technical SetUps as provided for members in real time on NorthmanTrader.com utilizing our KISS methodology. Active Set-Ups are posted in member areas only. To view previous setups please visit the Technical SetUps section of the website. To...

The Curious Chart of $DJIA
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The Curious Chart of $DJIA

Sven Henrich via Northman Trader The $DJIA chart is telling an interesting story, technically speaking that is. Frankly not sure what the message is quite yet, but I find it fascinating hence it might be of interest to share. First of all, note a behavioral set of facts I’ve pointed out on twitter: On Monday...