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Market Overview August 8 2021

Uncategorized Aug 11, 2021

This past week the $NQ (NASDAQ 100 Futures) were treated to what may potentially be a great opportunity to get our position size up on low risk setups before the index made new all time highs. 

We have now taken 6 long positions in $NQ, with another potential add shaping up off of Friday's weakness. 

A few weeks ago I wrote about How To Find A Market Top, and the three requirements I have of an indice before considering it a top. 

  • SQN Bull Volatile
  • Monthly Close above R3 Pivot
  • Price Parabolic Breakout

We likely have achieved one of the three requirements this past week, with the SQN going into a Bull Volatile Market Regime. 

Simply moving in to a Bull Volatile regime does not mean that a top is imminent, or even near. We can spend a lot of time here without getting a major market top. 

Price has not gone parabolic and we are not above the R3 Pivot which is 15,533 for the month of August. 

At a current closing value of 15,092.75 and an all time closing high of 15,172.50 we are definitely knocking on the front door of being above the monthly R3 pivot, this month. 

Though, unless we spike above the 15,533 area this week, it won't be a parabolic move. 

The plan this week will be to continue to buy weakness and if we do head out quickly, at least we've picked up 6 contracts going into the parabolic rise. It's not the double digit size I'm hoping to accumulate over time, but we take what the market gives us!

Bitcoin

This is not what a bear market rally or dead cat bounce, looks like.

Don't be fooled by people with high Twitter followings, that they know how to trade.

This is not what a bearish chart looks like. This is bears getting stopped out, this is bulls buying as much as they can get. 



We covered this two weeks ago in a special email (not the weekly newsletter). 

It continues to play out as we expect so far, and this is my playbook

Ethereum

Ethereum continues to improve, and continues to trade like it has a very bullish secret.

Compare how strong ETHUSD is vs BTCUSD chart above.

I will send a similar email documenting the opportunity in $ETHUSD as I did with $BTCUSD email earlier. 

The simple summary, we see $ETH above $10k and likely closer to $14k near year end (give or take a few months). 

New Strategies

The past few weeks I've been asking how much interest there is in offering trades as a service. 

The feedback was great, and so we will be putting that together. 

These are the three strategies that will be offered. 

Monthly Swing Strategy which trades an index ETF at the end of the month. It is a dead simple strategy that takes 5 minutes to put on. This is for those of you who responded back to me saying that you'd love something that was specific when to buy, when to sell, and not require more than a few minutes...this is exactly that strategy!

Short Squeeze Strategy. I'm sure you saw all the fun and excitement with $GME and $AMC (r/WallStreetBets) short squeezes this year. We've developed a quantitative strategy to get positioned at the very beginning of a short squeeze and get out well before the rug gets pulled out from underneath all the bag holders. 

Crypto Strategy. Similar to the Short Squeeze Strategy, the crypto strategy gets you in to not only the big cap cryptos, but when Alt Season is on, and we see multiple 50% moves day after day in a bunch of random crypto projects, remember the $DOGE pump? 

Each strategy will be sold separately, or if you are a Trading Lab member these will be included in your membership.

Let me know if you have any questions or thoughts. 

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