Daily Note

Important Note Today

Jul 12, 2019

Thomas Thornton

Today's note is important for a few reasons.  First we're starting to see the major US indexes with daily DeMark Countdown 13's on the upside. This is an important warning.  This week we've been showing the weekly DeMark Countdown 13's too with the S&P and Nasdaq 100 as well.  When we get both daily and weekly in sync conviction increases for a reversal.  I am hearing Tom DeMark could be on Bloomberg TV on Monday morning.  I don't know what he's going to discuss but it would seem these signals would be the strong guess.   Sentiment has been extreme over 80% too.  Investors Intelligence sentiment readings were as they say "in the danger zone".  This is a good time ahead of Q2 earnings to start to trim long exposure.  The market will likely punish stocks who miss or guide down.  Look at some names in Europe BASF, Daimler or in the US with yesterday's guide down by ILMN (one that I liked short).  Traders have bid up the market with hopes of a Fed cut later in the month.  Fine, bring it on as I don't think it will help and Ray Dalio was taking in an interview how the Fed has limited amounts of stimulus, so it's probably not a good idea to go too early.  He also says Europe has even more limited stimulus and if the US Fed goes into a stimulus mode it won't last more than a year. Hardly comforting words from the largest hedge fund manager in the world.  

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