Bear Flag QQQ Daily/Weekly Charts (Week of Nov 14th)
Markets get punched in the face on Monday? I expect this could take place as a gap down creating an island reversal pattern or the more likely scenario of a long wick reversal from the upside (gravestone doji) first, into a strong continuation for the rest of week.
1. HYG and Standard indices negative divergences.
2. USD has only a few more points to run down before it hits a floor of strong support.
3. FTX and Crypto issues are still materializing, this will spill over further with news of their tokenized stocks which were being held one to one for them and will need to be liquidated once bankruptcy goes through.
4. Yields are on strong support with no reason to continue downwards and likely to resume uptrend with the wave of FOMC members speaking next week straightening out the market and talking their books.
Most looking for shorts just above here. Once it is realized that we have topped for this rally it could accelerate expeditiously to the downside. Longs got confident, shorts closed out and those that were neutral got FOMO. Look out below... Here we come...
Something to consider in your own analysis.
1. HYG and Standard indices negative divergences.
2. USD has only a few more points to run down before it hits a floor of strong support.
3. FTX and Crypto issues are still materializing, this will spill over further with news of their tokenized stocks which were being held one to one for them and will need to be liquidated once bankruptcy goes through.
4. Yields are on strong support with no reason to continue downwards and likely to resume uptrend with the wave of FOMC members speaking next week straightening out the market and talking their books.
Most looking for shorts just above here. Once it is realized that we have topped for this rally it could accelerate expeditiously to the downside. Longs got confident, shorts closed out and those that were neutral got FOMO. Look out below... Here we come...
Something to consider in your own analysis.
Comment:
Democrats win the Senate unexpectedly. Bodes well for this theory. That's about a 3% difference in performance than what was expected with gridlock. Wouldn't be surprised to see a 2.5%-3% selloff to adjust for this change in statistics. We go from there.
Trade active:
I expected a larger wick to the upside if it was going to play out this way to be honest but it looks good for the gap down into tomorrow and everything seems on track. The points I laid out seem to have strengthened. Bonds said no today. 👌
Trade active:
Looks like the gap down happened a few days later than expected after consolidation. I expect continuation down with a large flush today or tomorrow. Opening at/below large levels.