US Equities and the Real Economy: Fed's COVID-19 Response Suggests Another Protracted Disconnection

U.S. Equity Strategy: Several Indicators Suggest a Pullback Likely

Fed Shifts Focus to Heal US Financial System to Facilitate Escape from COVID-19 Induced Recession

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<a href="https://www.smartkarma.com/entities/s-p-500" target="_blank" rel="noopener" data-smartkarma-citation="entities:22886:1">S&amp;P 500 (SPX INDEX)</a> near term rally sequence is laid out below with a bias to front run the Fed meet and set up a sell the fact inflection. Big tech is bending with some value rotation. NDX has underperformed in recent days with an outside engulfing day registered yesterday (bearish undertone if we can't clear resistance).Risk is favored into the Fed meet but the market may be getting ahead of itself if we reach SPX 2,950 ahead of guidance where QE will be in focus. We did favor adding risk in parts of Asia (Taiwan, Korea and H shares) and Germany. Keep a tactical framework where strong advances to be used to trim and intra day weakness/dips to add to risk.Without big tech driving the NDX, the market is vulnerable from SPX 2,950/70.

S&amp;P 500 (SPX INDEX) near term rally sequence is laid out below with a bias to front run the Fed meet and set up a sell the fact inflection. Big tech is bending with some value rotation. NDX has underperformed in recent days with an outside engulfing day registered yesterday (bearish undertone if we can't clear resistance).Risk is favored into the Fed meet but the market may be getting ahead of itself if we reach SPX 2,950 ahead of guidance where QE will be in focus. We did favor adding risk in parts of Asia (Taiwan, Korea and H shares) and Germany. Keep a tactical framework where strong advances to be used to trim and intra day weakness/dips to add to risk.Without big tech driving the NDX, the market is vulnerable from SPX 2,950/70.

S&P 500 INDEX

SPX into the Fed as Big Tech Bends