TradingEdge Weekly for Jun 19 - bullish vs bearish signals, crude & yields bullish, Nikkei breadth divergence, quant models signal long, corn seasonality, coffee bull trap
Key points:
- Five independent indicators flash bullish signals - industry bear market exhaustion, QQQ liquidity, healthy market environment, low bear market probability, and tech continuation.
- Four breadth indicators warn of sideways-to-lower movement: low component correlation, Hi/Lo Logic split, Hindenburg Omen, and Titanicburg approaching danger threshold.
- Multi-Index Trading Models flash Long SPY - blended 50/50 strategy delivers 15% CAGR with max drawdown of -29% vs SPY's >50%.
- TLT-USO spread surges above 11.6% - 85% win rate at 1 year with median +17% return; growth sectors lead.
- Nikkei hits 71,216 on narrowing breadth - historically resolves higher, but 2007/2015 exceptions produced 20-31% drawdowns.
- Corn enters weakest seasonal window (Jun-Aug) with 24% win rate - 15 declines of $3,000+ vs only 1 gain since 1976.
- Coffee surges +5.44% off 19-month low - all 11 historical precedents with this setup posted negative 2-6 month returns.
House view:
- Stocks:
- Short-term: Bullish. The VIX and

