Excellent analysis as always. In the article I linked to, I took a look at the weekly chart, and it’s fairly contradictory to the daily chart. It seems the bulls and bears are in a bit of a dog fight, and the market needs some kind of new catalyst to drive it in a distinct direction. I’d be curious to see what you think of the weekly chart I included in my article vs. the daily chart you posted here.

-Steve

I do not see a linked article. Could you please link it? Thank you.

Based on lower oil, the Dollar Rally has buoyed up consumer stocks and destroyed the commodity stocks.

Home Depot is elevated above its 20 day as it is a target consumer stock being both in retail and in homebuilding.

Intel is a consumer stock as well in the sense that it is tied into consumer electronics.

Take a look at Intel’s chart, it usually gets excited before a major market turn down; I think it is due to investor over exuberance.

Bank of America is above its 20 day, as is a leader of the Fannie Mae, Freddie mac, and Financial Rally, and because it along with almost 20 other stocks cannot be shorted in the way it has been lately, by order of the SEC.

The US Dollar is likely to fall lower on Monday as the USD/JPY has a correction, and also as the EUR/JPY has a correction. This means the stocks at the top of the list will fall lower.

I am bearish all stocks.

Any time in the afternoon on Friday would have been good to add some to a short selling position by adding to the 200% inverse DXD as it dropped below 60.

Notice how the natural resource shares are below their 20, this is due to the EUR/JPY, that is the yen carry trade unwinding.

I know this is going to seem radical, but I have reached or are reaching ‘Peak Dollar’; I provide some ideas on how to work that investment in the linked article.