Pristine Market Analysis & Watchlist 8/14

Tech Bounce!

Team,

An epic tech bounce on weak breadth today. Let’s dive in!

-Andrew

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Equity Dashboard

38.6% advancers which shows that aside from megacap tech, the market was pretty weak.

Treasuries

Treasuries were red once again during today’s RTH session, and we got the following news out that is adding to the weakness:

ZN_F 10yr Treasury Futures - Weekly Chart

Weakness in treasuries has a good chance of being a volatility trigger for equities, so it is important to watch yields tomorrow. Bond volatility took a step higher today, but so far we are making a series of lower highs

FX

The DXY dollar index broke it’s pattern of lower highs

Equity Volatility

Red candles across the board today for the equity volatility indices. Keep in mind that VIX expiration is this Wednesday 8/16. The recent pattern has been a volatility crush into VIXpiration followed by a volatility expansion.

Equity Index MTD August Performance

The indices are experiencing a minor pullback in August.

Index After Hours Price Action

ES S&P 500 +.14% - Below 20-day SMA & retesting the 10 EMA from below

NQ Nasdaq +.25% - Retesting the 50-day SMA from below

YM Dow Jones +.01% - Retesting the 20-day SMA from below

RTY Russell 2000 +.15% - Consolidating at the 50-day SMA

Economic Data

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