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Alphabet (or Google) crushed earnings last night.  Search trends continue to be strong with paid clicks +58% yoy and that a huge 900 bps ahead of expectations.  They have no competition in search and have destroyed the past and future in search.  It's also pretty scary how they also know everything about us, what we are looking at, where we travel, and what we buy.  The market loves the company as they consistently have had the ability to pull a lot of levers in order to beat numbers, invest successfully in new technologies, and evade severe regulatory issues.  They just paid the EU $5 billion like it we would pay a parking ticket.  So here's the problem, everyone is long Alphabet and there is no short interest.  Shorts serve as natural buyers on dips but without them bottoms can fall out after the last buyer buys.  As I mentioned the other day, we've seen companies beat earnings, gap up and fade lower which was seen last quarter too.  With that in mind, I added a small short in Alphabet as it gapped up (the implied expected move) and traded off the highs.

My patience with several trade ideas that have not worked ended today and I exited some positions and moved into more cash and a few new ideas.  I have wanted to not trade as much and give things some time to work but I feel I have to tighten things up.  We are working behind the scenes on some enhancements including new screens of long ideas and short ideas, both stocks and ETF's.  Delivery of trade ideas by email is also in the works.  Lastly we have been testing an early morning email that is very short and covers overnight action and news. I'll send out a beta version tomorrow morning and would welcome feedback.  

• US Markets - Sentiment, Daily and 60 minute tactical views - Potential for upside in SPX yet could be muted with weak NDX mega cap names
  
• Hedge Fund Telemetry Trade Ideas - Cleaned house on some losers and added some new ideas
  
• Costco - New Trade Idea
  
• Ford - New Trade Idea
  
• Transportation Index and Union Pacific - New Trade Idea
  
• Hedge Fund Telemetry "Extend and Pretend Index" very weak today
  
• Currency Update - USD and Euro back into a range, Bitcoin has an upside Countdown in progress
  
• European Market Update - It will take more than one day to get momentum moving upward
  
• Global Market Update - Sideways action but EEM vs SPY turning up
  
• Asian Market Update - Some strength in China
  
• Crude Update - Needs to get back over 70 for people to notice
  
• Gold Update - No changes and still not exhausted on downside
  
• Bond Update  - Next few days will be telling
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 1500 and Euro Stoxx 600
  

Here's a link to the Hedge Fund Telemetry market sentiment page with 40 charts of sentiment including equities, bonds, currencies, and commodities updated each day.   

SPX bullish sentiment is at 73% and is elevated

SPX daily off is off the highs but still could see 2837 the green dashed line called Trend Factor.  My concern about a weak or false breakout was the number of Nasdaq upside exhaustion signals seen recently.  

SPX 30 minute tactical time frame has potential for a move higher but will need the big techs to help and not fade

Nasdaq bullish sentiment is at 72%

NDX Index has reversed most of the gains today

Nasdaq 100 60 min did get another upside red Sequential 13 today on the open

Here is a new chart I am developing of the Nasdaq 100 above and the Daily Sentiment Index below with several technical indicators.  I hope to have all markets coded soon.  FYI I watch the green Setup 9's for better turning points on the sentiment

Dow Jones is having a good day and it is nearing the June highs.  BA reports tomorrow and it is the largest weight and has had the largest attribution for the Dow in the past year

IWM Russell 2000 looks like it will be making a bearish engulfing bar today.  (higher high and lower low vs previous day)

Trade Ideas - cleaned house today with some losers (covered FB, WFC, SPY, sold long ALK)  Added back short FDX, GOOGL, COST, UNP, and bought long Ford

COST has a very good record with the DeMark indicators in the past on both the long and short side.  I am pissed at myself as I missed the long entry in April with the downside DeMark exhaustion.   Costco has had quite a quarter and should back off with both the pink Combo and red Sequential 13's

Ford had a green Setup 9, a pink Combo and red Sequential 13 on the downside and I'm giving this a shot on the long side.  

The Transports Index has been a real dog this year and I am doubtful this will make a new high again in 2018

Railroads have been strong of late and UNP had an upside exhaustion red Sequential 13 today.  Failing at resistance with the presence of an upside exhaustion is typical.  A lot of chasers in this group lately.  

The Extend and Pretend Index is fading today harder than the market now down 1.9%.  If you want the list of names, shoot me an email

US Dollar bullish sentiment is at 86% and remains in the extreme zone.  This should work lower

US Dollar Index has backed off after the red Sequential 13 and is holding the 50 day but I expect this to move a little lower

Euro bullish sentiment is at 42% and still can't get over the 50% level

Euro Spot remains very range bound

Bitcoin continues higher and now is on day 2 of 13 with an upside red Sequential Countdown

Euro Stoxx 50 bounced in a big way today but will need another few upside days to show momentum turn

European Bank Index is still working on a base but this is encouraging

Bloomberg World Index is back at the 50 day and this chart defines sideways correction

EEM Emerging Markets ETF vs the SPY ratio continues to turn up after the recent downside exhaustion signals.  Will this be light the other 2 times when there was a bit of a stall or will this make a sustained move?  The US Dollar declining would help this

Nikkei bullish sentiment is at 71%

Nikkei bounced but will need to do more.  A move over 23,000 should be bought

Shanghai bounced for the third day in a row after China unveiled a host of polices to help stimulate its economy (tax cuts to fund R&D, increased local investment, infrastructure spending).  This also pushed the Yuan new 12 month lows

Crude bullish sentiment is at 71%

Crude bounce continues but needs to get over 70 for people to really notice

Gold bullish sentiment is at 10% and still very depressed

Gold had a green Setup 9 and it turned up slightly and then faded.  There remains a downside red Countdown on day 10 of 13.   

Bond bullish sentiment is at 57% and continues to roll over after being in the elevated zone.  

US 10 year yield had a big day yesterday and is flat today.  This is now on day 7 of 9 with a green Setup and if this can fullfil the 9 count (9 consecutive closes above 4 previous closes) then the red Countdown will be cancelled.  Then perhaps another Setup 9 inflection point and reversal within this range

2/10 Yield Spread steepened for the past couple days and but stalling today

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