Pristine Market Analysis & Watchlist 6/16

Quad Witching Incoming

Team,

The market momentum is incredibly powerful. We are experiencing a once in a decade event. Let’s take a look and see what is happening under the hood.

-Andrew

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Equity Dashboard

I have been traveling this week, and have had less time to look at the intraday price action, but I must say that what we are seeing is incredibly unique. This appears to be a blowoff top, but to be honest it has felt that way for a few weeks. The market finished strong today, but the VIX also finished strong! Normally, this would be a big divergence, and reason for pause, but none of these divergences have mattered recently. I have no doubt that they will in the near future, but for now the market is melting up.

US Treasuries

10yr US treasuries are no longer breaking down, but have not made much meaningful progress despite the lighter-than-expected inflation prints. As the economy continues to decelerate into year end, I would imagine that these treasuries could reach the top end of their YTD range.

Jaws!

The jaws setup continues to expand as the Nasdaq QQQ soars. It appears that investors feel more safe investing in megacap technology stocks than they do investing in US treasuries.

Index Price Action

SPY is ripping to the upside. We are trading above the upper 2 standard deviation bollinger band into quad witching. In normal circumstances, this would be a sign to sell. In this environment, overbot hasn’t meant a whole lot.

QQQ Nasdaq has also ripped to the upside, and is currently in overbot territory.

In the following sections of tonight’s update, I’ll cover my research in preparation for tomorrow’s trading session

✅ Trend Model Update - Our proprietary indicator that informs us on how aggressive/defensive to position in the market

✅Market Strategy - My trading plan

✅ Today’s Trade Blotter and Position Update

✅Daily Watchlist - We scan thousands of stocks and hand-pick the best reward/risk opportunities