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HERE COME THE FOREIGN MARKETS RALLYING. IS GILEAD TOPPING?

|Includes: Direxion Daily Brazil Bull 3x Shares ETF (BRZU)

RALLY-ON: HERE COME THE FOREIGN MARKETS

Jul 12 7:00 PM•BRZUComment!

Disclosure: I am/we are long BRZU.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Remember BREXIT? It didn't last long, did it. I remember writing that Europe, the Euro, and foreign markets generally were now bearish. And they were. For two days.

Look at our VIX-5 System Report for today. New buy signals: Brazil, Europe, South Korea. Playing catch-up.

Gold took a hit today. Oil rallied. And the Japanese Yen had a second day of selling. The Japanese government is livid about the appreciation of the Yen; and they have been threatening to sell Yen to weaken their currency for trade advantages. The US has warned them that such selling would be construed as 'illegal' currency manipulation. I guess QE is the only legal currency manipulation. This is a normal pullback at the moment. "Normal" can change in a hurry sometimes; so keep an eye on FXY or YCS.

Column1 Column2 Column3 Column4 Column5 Column6 Column7
VIX-5 TRADING SYSTEM          
Symbol Close PROP1 Position New Pos New Pos Issue
        Today Yesterday  
             
FAZ 35.14 -25 Short     *Financial Stocks Bearish ETF 3x
SMDD 22.05 -25 Short     * Midcap 400 Bearish ETF 3x
SOXS 24.73 -25 Short     * Semiconductor Stocks Bearish ETF 3x (NYSE:O)
SQQQ 16.5 -25 Short     * Nasdaq (NASDAQ:QQQ) Bearish ETF 3x
SRTY 20.48 -25 Short     * Russell 2000 Bearish ETF 3x
TECS 23.72 -25 Short     * Technology Stock Bearish ETF 3 x
BRZU 112.51 23 Long Enter Long   * Brazil Stocks Bullish ETF 3x
DWTI 77.97 21 Long     * Crude Oil Bearish ETF 3x (NO)
EURL 19.05 1 Long Enter Long   * European Stocks (FTSE) Bullish ETF 3x
FINU 69.2 21 Long     * Fin St Bullish ETF 3x (NO)
KORU 25.05 7 Long Enter Long   * South Korean Stocks Bullish ETF 3x (NO)
LABU 34.36 21 Long     * Biotech Bull 3x
MIDU 26.9 5 Long     * Midcap Stocks Bullish ETF 3x
RETL 43.38 5 Long     * Retail Stocks Bullish ETF 3x
SOXL 31.03 9 Long     * Semiconductor Stocks Bullish ETF 3x
SPXL 95.01 23 Long     * S&P 500 Bullish ETF 3x
TECL 39.94 5 Long     * Technology Stock Buliish ETF 3 x
TQQQ 107.11 23 Long   Enter Long * Nasdaq Bullish ETF 3x
UDOW 74.67 23 Long     * UP DOW ETF 3x
UMDD 63.73 23 Long     * Midcap Stocks Bullish ETF 3x
UPRO 71.91 23 Long     * S&P 500 Ultrapro ETF 3x
URTY 84.3 23 Long   Enter Long * Russell 2000 Bullish ETF 3x

We are still in RALLY-ON mode. The BAROMETER continues to rise. Here is our DASHBOARD. Our UDOW BAROMETER TRADE is now up 36.57% since May 18. BAROMETER is at 1.502, somewhat high -- but, remember, 6 is where it topped earlier -- so today's trades still can have time to play out on the upside.

81% of our issues are in SHORT-TERM bull moves. That is impressive. Look for ST TREND to break down as a potential selling indicator.

We are long BRZU, having exercised call options earlier to purchase shares. We like this ETF long-term. Here is a weekly chart of BRZU, to show why we like it long-term.

I also promised to show why I DON'T LIKE GILD. So I'm showing this chart as well. It has been very hard to profit on the short-side in the last few months. Everything wants to go up. So GILD may be bottoming.

We have another bullish play -- a short the short situation -- in WDRW, which is essentially long regional banks. We recommend 6-8 month options for this position. Unfortunately, WDRW does not trade options. But we are bullish on regional banks here.

Best trading,

MJC, CGTS

Disclosure: I am/we are long BRZU.