The market is in the midst of a 5 day melt up,
that I had warned you about last week,
with the big money crowd pouring money into FANG stocks.
July is infamous seasonally for this" $NDX melt up phenom,
which is often followed by August "meltdown"in the same stocks.
Leadership is narrowing into the largest of mega cap technology stocks,
highlighted by the "pandemic glamour stock" Amazon,...breaking above 3000 yesterday.
However, notice the ATR ( Average True Range) Indicator
for the S+P 500 ( As Shown Here)
It continues to show that this rebound rally from S+P 3000,
this month that is forcing substantial capitulation,
lacks significant mojo support from the broader market.
With the ATR this bearish and way off it's spring 2020 high,
as price continues to "pump" it sets up the almost certain likelihood of a substantial market correction.
This is not complicated.
This is what is called "the fake out"
I continue to recommend that you do not" fall for it",
or stay too long at this party.
You are being given at best,a false sense of market security.
Complacency is building, as the crowd bids up stock prices.
History shows however that another sharp market rally
this one coming after the market crash in 1929, was met months later
with something called the "Greatest Depression "in United States history.
So the moral of these observations are simple
Don't"even try" to convince yourself,that a fake out rally now
before another potential market crash later in 2020 is just not possible.
Thus, I wouldn't recommend
that you spend too much time "away "from your trading terminal.
Fate has a way of coming back to bite you in the ...
THE_UNWIND
7/7/20
NEW YORK
that I had warned you about last week,
with the big money crowd pouring money into FANG stocks.
July is infamous seasonally for this" $NDX melt up phenom,
which is often followed by August "meltdown"in the same stocks.
Leadership is narrowing into the largest of mega cap technology stocks,
highlighted by the "pandemic glamour stock" Amazon,...breaking above 3000 yesterday.
However, notice the ATR ( Average True Range) Indicator
for the S+P 500 ( As Shown Here)
It continues to show that this rebound rally from S+P 3000,
this month that is forcing substantial capitulation,
lacks significant mojo support from the broader market.
With the ATR this bearish and way off it's spring 2020 high,
as price continues to "pump" it sets up the almost certain likelihood of a substantial market correction.
This is not complicated.
This is what is called "the fake out"
I continue to recommend that you do not" fall for it",
or stay too long at this party.
You are being given at best,a false sense of market security.
Complacency is building, as the crowd bids up stock prices.
History shows however that another sharp market rally
this one coming after the market crash in 1929, was met months later
with something called the "Greatest Depression "in United States history.
So the moral of these observations are simple
Don't"even try" to convince yourself,that a fake out rally now
before another potential market crash later in 2020 is just not possible.
Thus, I wouldn't recommend
that you spend too much time "away "from your trading terminal.
Fate has a way of coming back to bite you in the ...
THE_UNWIND
7/7/20
NEW YORK