For 2 weeks now I've been bearish
in the market. There were so many signs pointing that we are headed lower to test, I mean literally a giant correction like SPY
back to 340-360 range. There are so many stocks that are trading 2 to 3x their price pre Covid! Stimulus money in the market. Billions lost after Crypto crash. Reverse Repo. Somethings gots to give. Granted I have some calls in the market but I also have some puts in place just in case we go down. Last week I started to think why aren't we collapsing yet? Looking back at the charts I realized there were downside gaps (Nasdaq, S&P
as well) to the downside two weeks back that needs to be filled. Is this it? Is this why we haven't gone down? Anyways, just stay vigilant
. Keep being bullish
until we're not. Maybe next week (June) we point lower. SOX and QQQ
are exhausted and need to rest here or are they the first to fall once again? Good luck.
Reason for correction:
, Housing, Raw Goods
Global Economic slowdown
Supply Shortage (India, Japan, Taiwan, Singapore) Exports.
Undeniable speculative money propping up stocks and crypto.