Next week I will be sending out our Q3 playbook. Email me if you're not already a Premium Member. There are so many interesting things happening right now that I think there will be plenty of opportunities to make money next quarter, despite it supposedly being a slower time of the year.

When months close at 4PM ET, I can't help myself but hit those monthly charts right away. I am very disciplined about never looking at them before the month is completed. You get into bad habits like that. So I look forward to the monthly candlesticks being done:

Let's get right into it:

...FEED them.

Continuing with a theme that emerged for us this week, we're taking recent volatility climbs as a gift to help us get through a typically slow summer trading period. Weeks like this one -- just ahead of a holiday week -- are the kinds that level-headed premium sellers wait for when putting on their "income trades."

From the desk of Tom Bruni @BruniCharting

One important part of the bull case for stocks in the US has been the leadership we've seen from small and mid-caps, growth areas of the market, and high beta stocks, however, we're starting to see some short-term deterioration in these leaders on an absolute and relative basis. Today I want to quickly look at the relationship between high beta stocks and their low volatility counterparts.

Over the last month we've spoken about weakness in small and mid-caps and the sectors we want to be involved in on both the long and short side. In healthy market environments we see sector rotation keep the broader market afloat as leaders correct through either time or price, however, we've not seen any of that over the last few months. The weakest sectors have not caught a bid as leaders correct, instead they've gotten even weaker. This is a problem.

From the desk of Tom Bruni @BruniCharting

In 2017 we saw an acceleration of the decade-long trend of growth outperforming value, and after further deterioration in this ratio to start the year, the weight of the evidence is suggesting a bottom may be in.

I feel like the recent minor skirmishes in U.S. stocks over the past week have been a nice little gift for premium sellers heading into what is a traditionally the slowest period of the calendar year. With the Independence Day holiday on the horizon, it's looking to me like a great time to start selling some premium in the indexes. So we've got a quick and easy one to set up before you light up your grills and sparklers.

From the desk of Tom Bruni @BruniCharting

Every time the stock market rallies over any significant period, we're bound to see the "most shorted stocks" chart come out of the woodwork with an ominous caption like "presented without comment" or "this is the top". Besides the fact that presented without comment is a comment in and of itself, the presenter very rarely tells us the methodology behind the chart's construction, leaving us with more questions than answers.

Last week, Tom Bruni penned a post titled Global ETF Carnage Continues, highlighting how ETFs representing stock markets around the world have been getting hurt by US Dollar strength. While he isn't yet calling a bottom, there was one particular Latin American ETF that was beginning to show signs of bottoming and it is a scenario he'd like to see replicated in more global ETFs to give him confidence the turn is coming.

The best way I know how to stay engaged in this possible turn is to have some skin in the game.

05/01/2019 UPDATE:

As a result of the labor intensive process needed to maintain the Chartbook Notes and their lack of use by the majority of members, we have decided to discontinue this feature. We will be adding new tools and functionality to replace it by the end of the quarter. In the meantime if any of the charts in the Chartbook are unclear and you need further clarification, please feel free to contact us and we'll get back to you within 24 hours. Thank you in advance for your patience as we make these improvements to the site.

Over the last few weeks we've been making several changes to the site and will be adding more stuff over the coming weeks based on your feedback. One of the changes we've made is the notes in our Chartbooks. We've received several questions on how to interpret them, so today I want to use this post to quickly walk you through just that.

One of the most valuable parts of our research process in the US is our multi-timeframe analysis of the Dow 30 components. By analyzing 30 of the largest companies in the US markets we can quickly gain an understanding of the index's underlying trend and which sectors are showing relative strength and which are showing relative weakness.

In India, we perform the same exercise with the Nifty 50 and Nifty Next 50. Over the last few months we've pointed out the weakness in mid and small-cap stocks, but more recently our analysis of the individual stocks within the large-cap indexes has started to suggest that this weakness may be spreading. Yesterday we talked about weak stocks in the Nifty 50, so today we're going to perform the same exercise with the Nifty Next 50.

From the desk of Tom Bruni @BruniCharting

Last month we wrote about short opportunities in GBP/JPY and AUD/JPY that took some time to develop, but are finally starting to work. Today we're going to focus on the US Dollar as the Dollar Index is up roughly 8% since bottoming on February 15th, and even moreso against many currencies not represented in the index. While the Dollar Index may be extended a bit in the short-term, there have been several moves that look like the start of long-term trends that we want to be a part of.

If you're like me, you think ATM charges are a crime. And one of the worst offenders is Chase, part of JP Morgan's umbrella. It's time we make them pay us back for all the ATM fees they've stolen from us for the privilege of having access to OUR money.

It just so happens, I see a great opportunity shaping up to make some high probability cash flow to replenish our bank account balances.