falconeu

Return to range?

Capital3X Think Tank

It a big chip of my shoulders as the Capital3x indicators were launched and there have been zero tech complains till now. I was expecting a flood as I was not sure if they would behave when traffic of visitors will hit the indicators. Till now things are smooth as the Falconfx and Gladiator are doing their jobs.

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I have attached one of the charts from falconfx EUR/USD once again indicating its importance for trading forex. The Falcon does not lose you too much money. The Falcon has been trained to protect your capital and only once it is sure does it give you a go ahead on going long or going short. Even then if it thinks it made a mistake, it will quickly descent from its flight and neutralizes its signals. True loyalty :)

Today I want to spend a bit of time on our older staple of charts.

First up is JNK/TLT ratio which is the ratio of risk assets prices to safe haven US treasury prices. The ratio is near proxy mirror of risk. The ratio currently is capped by 50 ma line at 0.341. The Oscillators on the ratio have now dipped to negative which means the ratio has now entered a zone of “sell on rally mode” which is the prevailing trend on SPX.


The CRB index is bouncing off the lows but looks a mighty small jump.


Wheat has planted a second inside day in the same week. This is huge and breakout and breakdown is imminent. The definition of Inside day clearly state its importance when they occur after prolonged downtrends or uptrends.


The VIXVXO ratio had peaked at multi decade higsh. We know from past experience that it is a matter of few days before the crash comes for risk assets. The question now is “has the crash for SPX started and all that we see here is just intermediate correction in a larger downtrend?” Thankfully we do not need to answer that as we concern ourselve with finding the next 20 pips and then sit tight for the next move. If you cannot get the immediate move bang on, how do we profess to know the futures 3 months down?

The FalconFx EU

Those who are still looking for subscription to the Indicators, its here

More charts and setup later in EU session after bond futures begin trading.

  1. The May Live Trade Sheet
  2. The May Live Trade Room
  3. C3X Performance FX portfolio
  4. The Bond auction schedule can be found here: Bond schedule

Mark
Capital3x.com