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Technical Analysis Confirms the Brutality of Liquidity

Last week we got technical confirmation of the absolutely brutal liquidity backdrop that I had repeatedly warned would occur in August in the Liquidity Trader Money Trends reports.  Liquidity sets context. Technical Analysis represents action. And the TA is now confirming a weak outlook for the next xxxxxxx xxxxxx xxxx months.

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It’s helpful that the broad market indicators confirm the trades that the swing trade cycle screens have been generating over the past 3 weeks. The last longs were closed out very profitably at the beginning of last week. That left 13 shorts on the list. All 13 of those were profitable by the end of the week. I will post an update of that report on Monday. It will be interesting to see if there are any new shorts, or longs, added to the list for the post Labor Day week. Non subscribers click here to access.

Cycles-  We’re still waiting for confirming xxxxx xxxxxxxx on the 10-12 month cycle. It’s not unusual xxxxxx xxxxxx xxxxxxx late. But when they do come, as soon as this week, they will signal the likelihood that xxxxxxxx xxxxxx xxxx  xxx xxxxxx lies ahead. A vestigial rally left over from the ghost of the up phase that died too early will xxxxxx xxxxxx xxxxxx xxxxxxx highs. Non subscribers click here to access.

Short term cycles are due to bottom this week. Projections have been following the market down, and have not been helpful. However, the 13 week cycle projection points to a low of xxxx, with the low still ideally due in the xxxxxxxxxx xxxxxxxx xxxxxxxxxx window. Non subscribers click here to access.

Third Rail Channels Last week’s crash channel is intact. The top line starts near xxxx on Tuesday and the centerline is at xxxx. Those lines will end the holiday shortened weak (oops, Freudian slip) at xxxx and xxxx. The market would need to break both to end the xxxxx threat. Non subscribers click here to access.

xxxx-xxxx is the most important support area. If it doesn’t hold, there’s an air pocket to xxxx that could be traversed quickly. Non subscribers click here to access.

Long Term Weekly Chart –  The major downtrend channel is intact. A test of resistance has held.  Long term indicators remain on the sell side.  A test of the low xxxx xxxx . If it breaks, then the target would be xxxx. Non subscribers click here to access.

Monthly Chart – The August reversal set up a downtrend channel for September onward.  It  allows for a drop to trend support around xxxx. The bottom of the new downtrend channel  is at xxxx in September. Non subscribers click here to access.

Cycle Screening Measures –   The cycle screening aggregate has now made both lower highs and a lower low over the past month. This suggests that the intermediate trend xxxxxx xxxxxxx xxxx. 6 month cycle measures got smashed. They are now both on the sell side suggesting that the decline could last x xxx xxx xxxxxxxxx. Moving averages of the indicators also suggest 13 week and 6 month cycle down phases. Non subscribers click here to access.

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These reports are not investment advice. They are for informational purposes, intended for an audience of investment and trading professionals, and other experienced investors and traders. Chart pick performance changes week to week and past performance may not indicate future results, as you know. Trading involves risk, and these reports assume that you understand those risks and manage them according to your tolerance. 

Posted in 2 - Technical Trader
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