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Today's note is once again focused on "Planes, Trains, and Automobile" sectors which I do every so often.  There are a lot of opportunities within these sectors on both the long side and short side within the US and globally and just a warning if printing, today's note is pretty long.  

Later today Facebook reports earnings and like the other FANG stocks, short interest is minimal (1% of float is short) and the implied move is 6%.  I have no position.  

Thanks for the feedback on the new early morning email.  Everyone really liked it.  With the release of our new website next month, we'll have an email opt in/out for the various reports.

• US Markets - Sentiment, Daily and 60 minute tactical views - Could see a little more upside but nominal
  
• Hedge Fund Telemetry Trade Ideas - Added AAL long and doubled up F long
  
• Planes Trains and Automobiles
  
• Currency Update
  
• European Market Update
  
• Coke Update
  
• Crude Update
  
• Gold Update
  
• Bond Update
  
• 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 77% and nearing the extreme zone again (>80%)

SPX daily continues to drift higher thanks to decent but late cycle sector rotation

Nasdaq bullish sentiment is at 69%

NDX Index continues to hold in but I am still focused on the recent upside exhaustion 13's.  FB reports later today and tomorrow afternoon is the most important stock in the world AMZN.   

NDX is churning at these levels in the past 2 weeks

Dow Jones Industrial Average still has a red Countdown in progress on day 6 of 13.  With BA under pressure and other industrials feeling tariff commodity pricing issues, I don't expect a move much higher

IWM Russell 2000 continues sideways and is right at the 50 day.  

Trade Ideas - Added AAL long 2.5% size and doubled up Ford to 5% long.  

First of all, here are the S&P Airlines, Rails, and Autos indexes.

Airlines had a recent downside exhaustion which I made me constructive on the group.  The drop in crude helped too but crude bounced and these fell back.  They are for sure feeling the higher crude prices but perhaps this is priced in and known.

Rails have been good in the last quarter and I am not sure this is a breakout one should chase.  

Autos have had very good responses with the DeMark pink Combo and red Sequential indicators.  Currently the downside Countdown is on day 11 of 13.  

BA reported today and has traded down.  This is the largest weight in the Dow and largest attribute in the last year to the index.  I expect this to fade lower

Airbus achieved both the wave 3 and wave 5 upside price objectives and has started to fade.  

American Airlines has some downside exhaustion signals and has been just crushed in the past 6 months.  Worth a shot on the long side.  

Alaska Airlines was added to the trade ideas sheet as I felt the upside breakout after the downside 13 was worthy of a long idea.  I took it off early yesterday with the poor action.  

UAL just had another upside exhaustion 13 and it looks similar to the January pop.  If long, I would sell or even consider pairing up with AAL

Southwest Air has an upside red Countdown in progress but has some tough resistance.  This could be a long with a stop at recent low

Fed Ex is well off the highs from earlier in the year an I expect this to drop under the lows

UNP had an upside Countdown 13 yesterday and this one is a big reason I do not expect a breakout in the rails

CSX has been a strong performer and the gains have not been able to follow through after earnings.  It is one day 6 of 9 with a green Setup

Ford was added yesterday when there was a downside red 13 Countdown but the 13 did not stick since the stock lifted but today with it down on the GM bad news the 13 will stick.  They report after the bell and the likely bad news seems to be getting priced in.  

GM has been hit hard today as they cut guidance.  It is on day 7 of 13 with a downside Countdown so this has likely not bottomed.  By the way when CNBC talking heads were all excited back in June when GM announced an autonomous driving business the upside exhaustion signals were triggering.  I wonder if they still like GM?  

Toyota has been going sideways with support at 7000 and resistance at 7700.  If this gets going the Nikkei will also be breaking out

Daimler Benz is trying to bottom and is near a downside 13

Porsche is the most advanced engineering auto maker and they also have won a lot of races too. God help Tesla when they release their EV next year. Recently they took their 919 endurance car from a couple years ago that dominated out of retirement and modified it without any restrictions just to go out and break lap records.  This video of the 919 Tribute at the Nurburgring is just astounding as it beat the lap record by more than a minute.  This is the most challenging and dangerous track in the world as there are no run off areas.  About a 5 1/2 minute video well worth it and better than watching CNBC.  
Porsche stock has had a lot of downside exhaustion signals but this was the 3rd of 5 waves down so there could be another leg down after a bounce

Volkswagen is set up similar to Porsche chart

TATA Motors makes tiny little cars in India as well Jaguar and Land Rovers.  I think this is a buy as the products coming out of Jaguar and Land Rover are top notch and have never been better. The downside exhaustion signals at the 5th downside wave price objective also is a good reason.

Tesla is just holding on for dear life.  I remain short and have some out of the money puts for August as lotto tickets.  They report on August 1st and the conference call can't be missed.  

US Dollar bullish sentiment is at 83% and remains in the extreme zone

US Dollar Index is right at the 50 day. Very range bound for now

Euro bullish sentiment is at 39%

Euro Spot range bound and still has a downside pending red Countdown on day 11 of 13.  

Euro Stoxx 50 reversed the previous day's gain.  

German DAX similarly reversed the previous day's gains.  This has a downside red Countdown on day 5 of 13.  

Italy had a downside 13 but has not turned up.  A move over 22,000 can be bought

Coke reported earnings and the stock gapped up 2%.  It is now up 10% from the June lows and with it only on day 4 of 13 I expect more upside.  

Crude bullish sentiment is at 73%

Crude continues higher and is on day 4 of 13 with an upside Countdown.  70 is short term resistance

Gold bullish sentiment is at 13%

Gold is up a little yet there remains a downside Countdown on day 11 of 13.  

Bond bullish sentiment is at 59%

TLT Bond ETF is bouncing today but I do expect to see the green Setup 9 happen on Friday

US 10 year is on day 8 of 9 with the green Setup and could see inflection down after the 9

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