Living With Uncertainty

Good morning folks, 
I am writing this at 12:45 am and have been up all night with a terrible headache. Pretty sure I am coming down with something. What a bummer!! I have to be up in 3 and half hours!!!  I figured since I am up I would just go ahead and get an early start on the blog. 

The markets were able to give us a follow through day after the relief rally we had on Tuesday. The next couple of days will be telling heading into a holiday weekend and a new month. If we can manage to close out the week strong then this could be more than a dead cat bounce and maybe Brexit isn't as bad as some have feared. Maybe all the talk about uncertainty is just an over reaction. 

However, if we sell off over the next couple of days then that could signal that we are looking at a more significant correction ahead. 

Its not a big shock that we had such a sharp bounce after the big drop we experienced. There were several sectors and indexes that had gotten completely out of there lower bollinger bands after the severe two day selloff. It was impressive the way some indexes managed to bounce right off potential areas of support. However, in my mind the markets are still guilty until proven innocent. 

The dollar has pulled back for the last two days and oil had a nice move yesterday of a bigger inventory draw than was anticipated. The oil strength helped the markets while gold and silver also managed to climb higher. The markets are sending mixed signals since gold and silver are usually  considered safety trades. Yet the markets showed no fear sucking all the volatility out of the markets like nothing even happened. What is gold and silver signaling?? 

The IBB had an impressive rally over the last couple of days reclaiming the long term dominant trend I talked about in last weeks market wrap video. The SMH, IWM, FAS and SPY were equally impressive with the moves they had. Heck, even retail and transportation participated. Call me skeptical but I am not convinced the worst is over. I may be wrong but only time will tell. 

It was a broad based move and now we have some gaps to fill on the daily in all those sectors and indexes. I am not saying they are going to fill today or tomorrow but I do think that eventually they will fill. I remain cautious. Like I said in this weeks videos we can have ferocious snapback rallies and if you can catch them right you can take advantage of the sort term trading opportunity. If you can't, then sitting on the sidelines may be frustrating but its a whole lot better than getting burned on a bad trade. Reality is that nobody knows with certainty what the markets will do. All we can do is try to take advantage of the opportunities they present but always remember to do it on your terms. Have a trade plan and stick to it.

As I write this is looks as though PBOC ( Peoples Bank Of China) just announced they are willing to let the yuan fall to 6.8 vs the dollar. That will probably give the dollar a boost but we will find out in about 5 hours. I am going to go lay down and see if I can't get at least a couple hours of shut eye. I will be back shortly and add any early market movers to the blog. 

Well it looks like we have another green open on deck. Jobless claims had a small tick up and the dollar is up slightly. Lets see how we close out over the next couple of days. 

Don't Miss Out!

NEW FREE CHAT ROOM 

NEW WEBSITE 

NEW LOOK

SIGN UP 

http://alphawolftrading.com/ 

Today's Markets 

In Asia, Japan +0.1% to 15576. Hong Kong +1.8% to 20794. China -0.1% to 2929. India+1% to 26999.
In Europe, at midday, London +0.5%. Paris +0.7%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude -0.9% to $49.42. Gold-0.5% to $1319.70.
Ten-year Treasury Yield +5 bps to 1.52%

Today's Economic Calendar

8:30 Initial Jobless Claims
9:45 Chicago PMI
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

ETF's on my Radar 

Volatility                                                               OIL                                      Biotech
UVXY XIV VXX TVIX                      UWTI DWTI GUSH DRIP USO       LABD IBB LABU  
VMIX VMAX      

 Gold                                SILVER         Dollar                                Financials

GLD NUGT JNUG           USLV             UUP                                 FAS XLF FAZ HYG JNK

Minerals and Miners                   Utilities           RETAIL                    Transportation              

XME GDX GDXJ                      XLU             XRT                         IYT  XTN

DUST JDST  

Agriculture                                  SPY     

DBA, DAG                           SPXS SPXL

STOCKS ON MY RADAR PREMARKET

HTZ pr Uber and Lyft tie up lil gapper premarket  kinda thick stock 

CXRX FDA approval could be looking at a double bottom on the daily small floater lots of debt has positive cash flow trading below book value 

CAFD earnings better than expected Super thin stock flirting with a 16 roll trading below book 

CRCM GOOGLE  investment in the company gapper good cash position small floater big cup with handle on the daily

ARQL pr flirting with a 2 roll burning through cash likely needs to raise soon 

SGY contract announcement flirting wit a 10 roll little gapper premarket Boat load of debt don't chase it 

*PR = Press Release* 

This weeks Ticker Tv Stocks to watch and their performance below