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Fed Chairman Powell is a different Fed Chairman.  Different in many ways.  He's not an academic and he says exactly what is on his mind, while not doing some sort of double speak. The market doesn't like him for his directness as they naturally are not fond of hawks. I like him because he's doing exactly what should be done after nine years of ultra accommodative very low interest rates. Let's look at some quotes from past Chairmen and then Powell.  These are meant to be a little comical for your entertainment.   
Paul Volcker with a mind bending statement
When people begin anticipating inflation, it doesn't do you any good anymore, because any benefit of inflation comes from the fact that you do better than you thought you were going to do.

Alan Greenspan master of double speak
I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said.
Alan Greenspan never could see a bubble and he was the one creating them
We are in the midst of a once-in-a-century credit tsunami. Central banks and governments are being required to take unprecedented measures. Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity are in a state of shocked disbelief.

Ben Bernanke FREE money for everyone! 
The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.
Ben Bernanke is an economist and rarely do economists ever predict recessions
The Federal Reserve is not currently forecasting a recession.
Ben Bernanke with a solid strategy that gave him the nickname "Helicopter Ben"
I'd throw dollars out of helicopters if I had to, to stimulate the economy.
Ben Bernanke didn't see it coming and he was in charge of the Fed.  Comforting
I don't see much evidence of an equity bubble.
Ben Bernanke should never say never.
We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.
Ben Bernanke with his infamous line
Subprime is contained

Janet Yellen obviously hung out with too many other Central Bankers
If it were possible to take interest rates into negative territory I would be voting for that.
Janet Yellen the academic, didn't see the risks ahead of the great financial crisis.  
For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.
Janet Yellen once a dove, always a dove
To me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.

Jerome Powell from yesterday's Fed press conference.  
About as honest as I've heard from a Fed Chairman
"These are good times. This is the economy in the range of full employment. Interest rates are low. It’s a good time to be addressing these things. So I put that out there and leave it at that."
Why in God's name would you take out accomodative?
"The point with ‘accommodative’ was that its useful life was over. We put that in the statement in 2015 just when we lifted off [beginning of rate-hike cycle]. The idea was to provide assurance that we weren’t trying to slow down the economy, but that in fact interest rates were still going to be pushing to support economic activity. That purpose has been well served, and that language now doesn’t really say anything that’s important to the way the committee is thinking about policy going forward. That’s why it came out."
What would get the Fed to act.  (Note it's not whenever there is a CNBC "Markets in Turmoil" sell off)

• US Markets -  Sentiment still divergent.  Some weaker seasonality ahead and a few more days left on pending upside DeMark exhaustion signals
  
• Hedge Fund Telemetry Trade Ideas - Pressed some ETF shorts late yesterday - poor timing
  
• Market Attribution and Nasdaq Summation Index - Concerning internals
  
• S&P vs Gallup and Google Trends
  
• FAANG and AMZN Upside DeMark Countdown 13
  
• US Sector Focus
  
• Sector Seasonality - A few favorites headed into weaker seasonal period
  
• Some Stocks I'm Watching Today
  
• PPO Monitor - Percentage Price Oscillator Force Ranked Sector Rotation
  
• Bloomberg Technical Pattern Recognition Screen
  
• Currency Update
  
• European Market Update
  
• Global Market Update
  
• Asian Market Update
  
• Crude Update
  
• Gold Update
  
• Bond Update
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 500 and Euro Stoxx 600 WE ARE NOW HIGHLIGHTING STOCKS ARE MOST ACTIONABLE
  

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.  When the new website launches we will be adding new charts and historical sentiment data for Euro Stoxx 50, UK FTSE 100, German DAX, French Cac 40.  We will be adding Japanese Bonds, German Bunds, and a few more.  
SPX bullish sentiment is at 63%

SPX daily still sideways

SPY seasonality turns negative in October

S&P 100 on day 11 of 13 with upside Countdown

SPX historically is weak after 8 rate hikes.   Hat tip to Anthony Bosco of Bloomberg

Nasdaq bullish sentiment is at 68%

NDX Index on day 8 of 13 after recent upside Trend Factor upside objective was met

QQQ seasonality has both 2018 current (blue lines) and 2007 when it topped late in October

Dow Jones Industrial Average starting to turn

IWM Russell 2000 well under 50 day now

IWM seasonality gets tough here

Trade Ideas Sheet - Long and short US equity ideas including ETF's.  We will be overhauling the Trade Ideas Sheets for long only, short only, ETF's when the new website rolls out soon.  There will also be a clearer email distribution with changes.  
Trade Ideas Changes:  Made some presses late yesterday (notified on Twitter) Doubled shorts to 5% from 2.5%.  XLK, XLI, DIA, QQQ to bring net short to 71%.  
Stops on everything.  TSLA 320, GDX 18.35 , VOD 21.95, FEYE 16.00, FXI 41.95, NVDA 275,  QQQ 185.50, XLK 77, SPY 295, XLY 118, AXP 114,  WHR 120, XRT 53, IWM 172, XLV 95, BRK/B 225, IBM 153, DIA 275, XLI 81.50, IBB 123, AMD 35, ROST 100.50

David Rosenberg put this out yesterday and it illustrates what I have been seeing all year with narrow attribution.  There is a big difference with breadth and attribution.  Bulls cite cumulative breadth and it really is a terrible timing indicator

The attribution in 2018 of the top 5 stocks is at 50% vs other years when it's more broad at 30% of the gains.  I can't recall who sent this to me.  

Nasdaq Summation Index is a mix of breadth and volume and it continues to drop.  This is quit unusual and when it drops under zero the markets are loud and clear dropping.  This is why I think the music could stop at any time

People are not concerned about the economy and a low number like at 12 is lower than other market tops.  

S&P 500 searches also very low.  It spikes on sell offs

FAANG with another upside Sequential Countdown 13

Amazon with another Countdown 13 today.  If there isn't a pullback from here a stalling period is likely

Apple still looks the best of all of the mega cap tech's but it's still overbought

GOOGL could move a little higher but beware of another lower top (wave 4) followed by wave 5 down with a 1095 price objective

Transports have been discussed here for weeks as a potential wave 5 top

XLF Financials turned down exactly on the 13

XLF Financials entering a period of weakness

XRT Retail entering a period of weakness

XLV Healthcare entering a period of weakness.  Back in May I showed the potential for strong seasonality to September.  This has been without any pullback.  

ABT is on the DeMark Screens today as a sell (see below)

TTWO also on DeMark Screens

EW also on DeMark Screens today

MCD also a sell on the DeMark Screens

GW Pharma still moving up albeit with volatile action

The PPO Monitor is a proprietary monitor developed to force rank Indexes, Sectors, and Stocks.  It ranks top down by strongest to weakest by percentage above/below the 50 day moving average.  Shorter term signals can be seen when the 10 and 20 day moving averages turn up (green) or down (red) which often are followed by the 50 day moving average.  This is useful to watch for historically overbought/oversold percentage above/below the 50 day moving average.  It is non correlated with the DeMark Indicators however we have found upside/downside exhaustion signals often occur when something rises to the top or drifts to the bottom of the monitor - increasing the timing aspect. We share this monitor with clients with Bloomberg Terminals.  An added feature is that each market/ETF can be expanded with each component force ranked in the same way.  A couple other features include price deviation from intraday VWAP (useful for intraday reversals) and new 20 day highs/lows on right side.  Please inquire if you would like to be permissioned to use the PPO Monitor.  

Today's highlights: Still seeing the top ETF sectors being bought.  These are the recent best performing sectors.  The opposite happening on the downside

S&P 500 Members/Absolute Price Performance and Relative Price Performance vs S&P 500 and Sector ETF's.  ETF's vs Index Sectors.  Pair Trades.  Long side  is first symbol, short side is second symbol.  

US Dollar bullish sentiment is a 19% and bouncing a little

US Dollar Index

Euro bullish sentiment is at 64%

Euro Spot

Yuan continues to weaken just a little

Euro Stoxx 50 is now turning bullish.  Start small since I am still skeptical with the series of lower highs

German DAX same story

France CAC is a little stretched I want to buy dips here.  Looks like a change of trend

EEM Emerging Markets ETF continues to hold in and looks OK to buy

Nikkei bullish sentiment is at 86% and is extreme.  A limiting factor

Nikkei could be nearly done with the breakout move

China / Hong Kong FXI ETF still holding in OK and I remain long

Crude bullish sentiment is at 84% and remains extreme

WTI Crude Futures still has potential for a little more upside

Gold bullish sentiment is at 23%

Gold Futures with the DeMark Sequential Countdown 13

Gold ETF GLD with the DeMark Sequential Countdown 13 - I like when these are in sync

Bond bullish sentiment is at 60%

US 10 Year Yield stopped with the upside Combo but still could move a little higher with the pending red Sequential

US 30 Year Yield same story

US 2/10 Year Yield Curve should get the downside 13 in the coming days.  This has only moved the curve steeper for a short period after the signals.  That illustrates the strong trend this year

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