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The Asian and European markets have been under severe pressure all year and the US markets have just started to exhibit signs of stress.  The FANG / Tech / Consumer mega cap stocks have started to show clear dispersion.  The number of leading stocks in this small group has shrunk to just a couple - Apple and Microsoft.  We've lost Netflix, Google, Facebook, and Amazon.  Traders have hit me up asking when to buy all of these constantly on the way down.  They can be very good short term trading stocks and for the purposes on my work has not been to trade shorter term as I'd rather focus on some larger trends.  One of the ways to trade on a shorter term time frame is to look tactically at 60 minute time frame charts as they tend to have decent upside and downside five wave moves as well good inflection with the DeMark Indicators.  We've decided to build out a 60 minute strategy on both the S&P and Nasdaq 100 which could go against a longer term time frame at times.  I'll go over it tomorrow on the Hedge Fund Telemetry Daily Note Live Webinar.  If you haven't registered you can here.  It's at 10:15am EST and a replay will be available.  

We're nearing the launch of the new website with a lot of new changes.  New sentiment charts that gives the user ability to adjust time frames back 20 years, all new trade idea pages with long only, short only, ETF's etc with many daily ideas including the Bloomberg Automated Technical Patterns .  We'll also be sending the Daily Note with a link to the site to read so viewing and printing will be improved.  We really appreciate all the support of our clients as your support has helped us build out the platform that we believe is much different than anything available.  If you have ideas and or suggestions, please send an email.  Thanks again and we'll see you live tomorrow.  

• US Markets -  Sentiment at midpoint, tactical charts suggest things will continue lower
  
• Hedge Fund Telemetry Trade Ideas - Added some Bond ETF and a new commodity long
  
• 60 minute tactical charts of some key stocks
  
• Copper looks higher and I'll play it buying FCX
  
• WHR - Anatomy of a failed trade
  
• PPG - October Theme of Guidance Cuts
  
• Bond ETF's Back on the long side with TLT and IEF
  
• US Sector Focus of some important key sectors
  
• PPO Monitor - Percentage Price Oscillator Force Ranked Sector Rotation
  
• Bloomberg Technical Pattern Recognition Screen - Let me know if you want a PDF on how this works
  
• Currency Update - Watch the Yuan
  
• European Market Update - New lows
  
• Global Market Update - New lows
  
• Asian Market Update - DXJ Japan looks lower
  
• Crude Update - Stalling
  
• Gold Update -  Sideways still
  
• Bond Update  -  DeMark exhaustion signals across the board should see a bond bounce
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 500 and Euro Stoxx 600 September Monthly data updated
  

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 48%

SPX daily at 50 day

SPX 60 minute tactical time frame now in wave 2 with downside wave 3 target

Nasdaq bullish sentiment is at 53%

NDX Index at support

NDX 60 minute tactical in wave 2 with downside wave 3 price objective lower

IWM Russell 2000

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:   Added TLT, IEF, FCX long 2.5% size.  Reduced FEYE long to 2.5% from 5%.  Still love FEYE but with tech weakness locking in 3.5% gain on half
Stops on everything.  TSLA 300 (lowered stop, GDX 17.35 , FEYE 16.00, NVDA 295,  QQQ 190 (raised stop), XLK 79 (raised stop), SPY 295, XLY 118, AXP 114,  XRT 53, IWM 172, XLV 95, BRK/B 225, DIA 275, XLI 81.50, IBB 123, AMD 30 (lowered stop), ROST 100.50, ABT 76, ORCL 53, LULU 165, AMZN 1990 (lowered stop to breakeven), DXJ 61, GLD 111, TLT 111, IEF 98, FCX 12

Apple

Amazon

BRK/B nearing short term top

Copper bullish sentiment is at 45% and I expect it to move higher

Copper futures higher low in wave 2/B with upside wave 3 potential target higher

FCX new long idea

WHR was added as a long at 124 recently with the downside DeMark Countdown 13 and stopped out at 120 - happily limiting losses.  

WHR weekly now has a downside Countdown 13 and I'd like to see a little stability first before getting back in

PPG came out with earnings last night and lowered guidance based on every conceivable excuse.  Expect more guidance cuts with earnings this month.

IEF uptick

TLT uptick

Semiconductors should work lower

Transports should work lower

Financials report Friday and there is more risk than reward with this chart

Tech is firmly below the 50 day

Utilities has potential to break out above recent high

Energy getting a lift with recent hurricane and the sector has the biggest expectations this earnings quarter

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 many more 20 day lows

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.  EMAIL ME IF YOU WANT FULL PDF WITH DETAILS ON HOW THIS WORKS.  WE ARE GOING TO DO A WEBINAR WITH THE ANALYST AT BLOOMBERG IN COMING WEEKS.  

US Dollar bullish sentiment is at 56%

US Dollar Index

Euro bullish sentiment is at 30%

Euro Spot

Yuan could be breaking down with Countdown on day 2 of 13.  This has global implications

Euro Stoxx 50 bounced off lows but still looks terrible

German DAX same

Italy

Spain

UK is barely holding support

Bloomberg World Index at low end of range and I expect this to leg lower

EEM Emerging Markets ETF despite Brazil gains no help for EEM

India still looks lower

Nikkei bullish sentiment is at 76% down from bell ringer 96% recent peak

Nikkei DXJ ETF still looks lower

Crude bullish sentiment is at 86% still extreme

WTI Crude Futures stalled here but has a little potential for completing upside Countdown if this hurricane is very disruptive

Gold bullish sentiment is at 14% and remains depressed

Gold still sideways

GDX needs to hold recent low

Bond bullish sentiment is at 31% and a new low for this cycle.  Chart not working.  I can't wait to have the new charts next week for you.  

US 10 Year Yield should reverse here

US 30 Year Yield both Combo and Sequential and should reverse here

US 2/10 Year Yield Curve

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