The E-mini futures is testing the 50 DMA currenty. Price was moving higher (upper yellow trend line) and hitting higher highs, but bigger issue for bulls currently is as price was moving higher, RSI (below) was divergent and now is breaking down.
If the futures close below the 50 day SMA, that could be a bearish event given that usually the last month we have tested and bounce back above.
Blake Morrow
Chief Currency Strategist, Wizetrade
I AM ADDING THE CHART BELOW IN RESPONSE TO THE COMMENTS FROM ANON, the smart guy.
you don’t know what divergence is…do you…
The next chart is for you, same page smart guy.
Hey Jackass, silence is golden! Or were you thinking “con-vergence”?
anon – you’re an idiot.
Anon – Just keep BTFD… nothing could possibly go wrong.
Anon…post a pic so I know what stupid looks like when I see it….thank you…
Hey wonder wiener…yeah you ANON…pull your head out and if you can’t make a comment that adds to the community, keep your stupid comments to yourself!
anon is short for anonymous = short on guts enough to put your name on your pathological stupidity . You must be the poster person for birth control & Common Core !
Go long, Anon! You’ll find out what divergence is!
I’m back. My apologies. My comment was made because I thought you we’re talking about RSI being divergent on the move from the April 13th lows, which it is not. My bad, a misunderstanding. Although (at least on my charts) this final peak has broken the previous level of divergence suggesting there’s another high to come FYI. Although I notice Blake’s army is out to get me. So I’ll make this comment, you have been shorting the SPX for months and it just keeps pushing highs. And I agree we will see a pull back sooner of later, but I’m sick of hearing about it every time the market goes down, then hearing crickets every time it goes back up. Same thing with the yen pairs, all this time you could have been playing the range, but no, all I hear are cocky comment every ten pips they drop, then silence when they go back up. Shorting stocks is not only a bad thing but rarely profitable. Any updates Blake on how much you’ve lost vs. how much you’ve gained shorting the SPX this year?
TO be clear, I have been short equities since March NFP’s released in April. So, about a month…and yes, it has been choppy, but my first short equity market exposure in the last couple years. I am about break-even in my position (which will remain a longer term position throughout the summer). Second, since starting to short the JPY pairs since January, it has been a very good bias to trade from. Yes, USD/JPY has held support the last couple months. Shorting rallies on the USD/JPY has been the name of the game. If you listen to my daily 3.5 hours of free webinars every day, you would know this. But frankly each and every day I have to be accountable for what I am trading an what I am doing. Every single day. Who else do you know who does that? So, don’t assume you know what I am trading. If you listened to my daily webinars you would know exactly how I am trading the market.
Blake, I haven’t listened to you in months. But I do recall you saying that you had covered all of your positions (I would assume including JPY pairs) a couple weeks ago when the Jpy was weak. So you’ve been whipsawed for sure. But I do recall that throughout the past year when I did listen to you, you were a perpetual equity bear often warning of the impending doom of stocks falling and throughout that time they have gone up (as they almost always have). I do agree, you are typically accountable. I just wish you didn’t advocate shorting equities to tons of people, it’s not only amoral but puts a lot of people that don’t understand the risk at risk. But that’s your prerogative.
I don’t “advocate” shorts, but when you see correlations diverge, you must raise awareness. Correct? If the market fell, and I did not warn, you (I am sure) would have asked “why didn’t you warn us?”
Your right, I have been whipsawed around, but if you listened the last 2-3 months you would have known that. And I admit it. Again…accountability.
Last reply, I don’t want to belabor the point. Sure you can constantly warn of market corrections that way you’re right when they happen. But IMO, you really can’t accurately call an equity top, no one has ever been able to. Sure the have been hedge fund managers that claim to, but if you look most of them only pulled that off once in their lives. Leading me to believe it’s luck. Sure stocks are overvalued, that doesn’t mean they won’t be up 20% in a year though. I’m sure you have people listening to you and cashing out their IRAs to try to skip the crash, but I suppose that’s their fault.
And thanks for replying, I appreciate you taking time and being honest.
To question one’s accountability when using the name ‘anon’ is pretty damn weak. This isn’t my place to step in on Blake’s behalf (he’s a big boy, and can fight his own battles). However, reading your passive aggressive comments has set me off. Firstly, Blake does not force any of his listeners / followers into trades. Secondly, give credit to the guy for being honest and public with his views and positions while the rest of us trade in anonymity. I for one, with near 20 years of real trading experience, will say it is damn helpful having someone w/ his keen eye and feel for the market elaborating, analysing and sharing ideas. Do I follow everyone one of his trades – of course not, and nor should anyone out there. Everyone must make their own decisions. But man, your ranting is weak, misplaced and frankly smells of jealousy. You want accountability – email me your name and phone number and we can chat real-time about it. If you don’t like what the man has to say then stop reading his publications, stop following him on Twitter and publish your own views. If people start following you, then you’ll have your own audience to talk to – and if you are good, maybe you’ll get a fraction of the followers Blake has built.
Good point Nigel. I have been trading for a year, I don’t see anyone does like him – sharing his ideas and position publicly everyday 3.5 hours. His views are really helpful for guiding my decision. At the end, whether to pull the trigger on the orders, it is still up to the traders choice. No one can ever force you to do that.
Nigel – Thank You. You summed up my feelings exactly!
Nigel, as far as I’m concerned that’s pretty spot on! Blake always explains his reasoning, so no one should be getting sucked into trades they don’t understand or which don’t fit their own risk parameters. And he’s pretty special in being a natural teacher as well as having an extraordinary gut feel for the market. Add to that that he’s kind, generous and honest and what more could you ask for? As others have said, if that’s not enough for you no need to stick around and listen…