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Thanks to all the attended today's Hedge Fund Telemetry Daily Note Live Webinar.  I covered a lot of markets from global equities, bonds, currencies, commodities as well some sectors and stocks.  One of these days I'll figure out how to run the webinar software so skip a few minutes into it, while I figured out how to put on the sound.  Did I mention I hate technology?  Here is the link for the replay.  

A bounce is likely ahead into wave 4 with the shorter term tactical 60 minute charts while the first wave on the daily charts should bounce with a lower high bounce.  A few option trades I've mentioned from early September I'm still holding:  VIX Oct 15/20 call spread (potential for 3x looking good) QQQ Oct 180/165 put spreads (potential for 10x still a way to go) SPY Oct 285-270 put spreads (7x potential) This is a risky market now and I hope everyone trades carefully.  This is a brief note and I'll have a full note out tomorrow.  Again, thanks for all of your support. 

• US Markets - Sentment is not oversold and market starting new 5 waves down.  
  
• Hedge Fund Telemetry Trade Ideas - Took profits on half AMZN, IWM, XRT - could re add on a bounce
  
• VIX Index Update
  
• Bond ETF's
  
• PPO Monitor - Percentage Price Oscillator Force Ranked Sector Rotation
  
• Bloomberg Technical Pattern Recognition Screen
  
• DeMark Screens - Daily, Weekly, Monthly upside/downside exhaustion signals within the S&P 500 and Euro Stoxx 600 VERY FEW SIGNALS MEANS MARKET UNDER PRESSURE.  TOMORROW COULD SEE SOME DOWNSIDE SIGNALS START TO TRIGGER
  

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 44% and expect a deep drop today later.  

SPX daily really steep drops tend to continue.  

SPX 60 minute tactical time frame should see a bounce very soon but this is not the low to buy for anything other than a trade

This divergence really mattered  

Nasdaq bullish sentiment is at 53% - more downside ahead

NDX Index has support at 7000 but this is just the first of 5 waves down

NDX 60 minute tactical getting oversold short term but again it will likely be a short term lower high bounce

Dow Jones Industrial Average has an upside Countdown that I have been doubting would complete.  I've used DeMark for long enough to know when to fade some pending signals

Dow 60 minute tactical at the wave 3 price objective but could overshoot before the wave 4 bounce

IWM Russell 2000 is in trouble with the downside red Countdown on day 2 of 13

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:  REDUCED SHORTS FROM 5% TO 2.5% WEIGHT:  AMZN +9.15%, IWM +4.5%, XRT +5.5%
Stops on everything.  TSLA 320, 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

Will this continue?  If it can move higher above 20 for a few more days then things can get wild

Oversold and I'm holding both the TLT and IEF long with a 2.5% weighting each

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 more 20 day lows and now most ETF sectors are under the moving averages.  When the average of all get >5% below the 50 day then oversold readings start to show up.  Only 3.3 below now.  

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.  If you want a PDF from Bloomberg that explains this strategy, please email us.  We are going to do a webinar in the next two weeks with the Bloomberg analyst who created this strategy.  

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