Stock Market – Sell the Rumor, Buy the News

Crude Oil – Buy the Rumor, Sell the News

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Today we will be covering...

  • Today, we will examine EURJPY.

  • Not unexpectedly, the stock market rallied after an initial gap down in the futures, after the US bombing of Iran’s nuclear sites, and Iran’s meek and telegraphed missile attack on the US base in Qatar.

  • Crude oil (CL) had a tremendous pop & drop, buy the rumor, sell the news Sunday-Monday event. Traders are betting on no WWIII.

EURJPY – Part 1

  • The daily cycle composite of EURJPY suggests a cycle peak within 1-2 weeks or so.

  • EURJPY may be one of the better short opportunities in forex.

  • Part 2 deep dive will be covered in the Premium content.

Sentiment & Technical Analysis

  • The CNN’s Fear & Greed Index slightly improved from 55 to 57 in Greed.

  • Somewhat surprisingly, given the strong stock market day, the total CBOE put/call ratio rose smartly. Intriguing!

  • US households holding of stocks as a percentage of total assets.

  • Smells of exuberance, compared to the historical records.

  • This describes a long-term state of sentiment of individual investors. It is not a short-term indicator or trading signal.

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