The Pattern: From rising wedge to Double bottom, W shape at 30m, and consoliding vollume. Conquering the river of 13000 to break the resting and resume upward movement.
The Controller: Fed are subjected to stay dovish on policy and neutral on rising yield, they only consider rising rate if all the indicators reflects which is still well below the target. In fact, Rising rate is fully projected as null prob. On the top of that, the unemployment and growth data is still low that further easy policy sustains through out extended period. The pressure from rising yield make investors tempting to more position of hedging as well as short so that the theme of sustainable low rate and ease policy could take advantages of hedging liquidity and eventually, lead the growth market to new record high.
The Time: March and Aprill - The renowned month with historically best performance since 2002, up to 3.5% to 5% upward. Furthermore, the earning reports are ready to carry Year end (holiday), January effects (spending) both best quarter of the year. While The market points to high voltility, its clear sight that the more hedged and shorted it is, the higher and sooner the new record could be reached.
The Nap: The Bear appears at the supercycle of February when it took a nice prediected 12% correction to the well achieved high of 12200 (which beautifully called) and quickly break the bearish trend with solid supportive W bottom. This gives a well- needed restful nap for NAS more sustainable record dated back to 5 months ago, and the liquidity that NAS confirms the readiness for another take of record high. This also matches the resting pattern primarily happening in February - after which NAS gradually surges with firm uptrend.
The Play: the increasing yield seems the only factor for bear existing at the current market. One might argue its not going to fade at anytime soon; and the play of rotation out of tech shoud continue. However, The rule of game has changed quite drastically. The pandemic is here to stay and so does it effect to the economy. Thus projection of recovery could only be shortened by further gigantic stimulus bill to come. The scale of bill rather get bigger by the stance of Democracy. Eventually, the greater access of economy to larger circulation e.i. higher min wage with reopening on the horizon e.i. more training, recruiting probably triggers the nerve to shout out at inflation risks. Lo and behold, the speed of changing hand is different of inflated price. The CPI and PPI is reported absolutely under controll that inflation on the horizon is very likely outlier event. Furthermore, the reopening is actually one of a kind catalyst for NAS as the major of indices currently comprises those tech name expanding retail business and shipping towards consumer service provider.
CONCLUSION: All aligns to one outcome. and the Wall-Street are well repared for this. well done Catie, 🐂 comes and best part of BULL to come with🌜🚀
Disclaimer: This idea is published as the sake of acknowledging one's opinion, not advising to take on any further position and risks. Traders should consider their own risk at any circumstances.
The Controller: Fed are subjected to stay dovish on policy and neutral on rising yield, they only consider rising rate if all the indicators reflects which is still well below the target. In fact, Rising rate is fully projected as null prob. On the top of that, the unemployment and growth data is still low that further easy policy sustains through out extended period. The pressure from rising yield make investors tempting to more position of hedging as well as short so that the theme of sustainable low rate and ease policy could take advantages of hedging liquidity and eventually, lead the growth market to new record high.
The Time: March and Aprill - The renowned month with historically best performance since 2002, up to 3.5% to 5% upward. Furthermore, the earning reports are ready to carry Year end (holiday), January effects (spending) both best quarter of the year. While The market points to high voltility, its clear sight that the more hedged and shorted it is, the higher and sooner the new record could be reached.
The Nap: The Bear appears at the supercycle of February when it took a nice prediected 12% correction to the well achieved high of 12200 (which beautifully called) and quickly break the bearish trend with solid supportive W bottom. This gives a well- needed restful nap for NAS more sustainable record dated back to 5 months ago, and the liquidity that NAS confirms the readiness for another take of record high. This also matches the resting pattern primarily happening in February - after which NAS gradually surges with firm uptrend.
The Play: the increasing yield seems the only factor for bear existing at the current market. One might argue its not going to fade at anytime soon; and the play of rotation out of tech shoud continue. However, The rule of game has changed quite drastically. The pandemic is here to stay and so does it effect to the economy. Thus projection of recovery could only be shortened by further gigantic stimulus bill to come. The scale of bill rather get bigger by the stance of Democracy. Eventually, the greater access of economy to larger circulation e.i. higher min wage with reopening on the horizon e.i. more training, recruiting probably triggers the nerve to shout out at inflation risks. Lo and behold, the speed of changing hand is different of inflated price. The CPI and PPI is reported absolutely under controll that inflation on the horizon is very likely outlier event. Furthermore, the reopening is actually one of a kind catalyst for NAS as the major of indices currently comprises those tech name expanding retail business and shipping towards consumer service provider.
CONCLUSION: All aligns to one outcome. and the Wall-Street are well repared for this. well done Catie, 🐂 comes and best part of BULL to come with🌜🚀
Disclaimer: This idea is published as the sake of acknowledging one's opinion, not advising to take on any further position and risks. Traders should consider their own risk at any circumstances.
Trade closed: target reached:
What a beautiful 500 pips catch ! The play has been carried out brilliantly. Congrats to you all who followed my call.
Please drop like for our next amazing play.
Cheers and Crack on !
Please drop like for our next amazing play.
Cheers and Crack on !
Neckline 13075 is smashed solidly. the Play is confirmed. Congrats Katie.
For now, stick to the bright side and hold on your ride because the best part of bull is pretty soon emerged.
Cheers.
Thank for all the support, please smash the like for more ideas in the play