Week Ahead - June 22-26, 2020 - Can the Bears change the trend?
Technicals
We are waiting for high volume bear follow thru if we keep low bear volume we will look for sideways trading, if the bulls break above 3167 there is a high probability of record highs the bulls have enough room on rsi to get record highs. We saw aN initial weekly bear heiken ashi candle last week bears want high volume solid heiken ashi candle.
Fundamentals
Always watch that 10 year, it is down to .68 this is bearish as of right now. Ideally crude should move with the market. Keep in mind the surge in virus cases has the potential to be bearish. Also keep in mind just how many people are counting on this market to stay up boomers, hedge funds, pension funds, fed, Trump for re-election. Long term we are definitely in a massive bubble, but it doesn’t have to pop now.
Look at the way the Robinhood traders have bid up these bubbles in Tesla, Nikola, and Hertz. Kinda like the dot com mania, I even heard of 12 year olds going on Robinhood and buying the dip. The days where these Robinhood traders type in random 3-4 letters ticker combinations, buy everything and everyone makes money without doing any research will come to an end. There are a lot of overpriced stocks that will have a dip that you won’t want to buy. The things that you do want to buy the dip on are metals, miners, commodities, and foreign stocks.
The Robinhood people think they can’t lose because either the economy will come back or the fed will print the stock market higher. But what they don’t understand is that if they just print the market higher, In hyperinflation where everything goes up forever stocks tend to underperform commodity inflation so their dollars won’t buy anything, which is why they should be buying metals and miners.
We are waiting for high volume bear follow thru if we keep low bear volume we will look for sideways trading, if the bulls break above 3167 there is a high probability of record highs the bulls have enough room on rsi to get record highs. We saw aN initial weekly bear heiken ashi candle last week bears want high volume solid heiken ashi candle.
Fundamentals
Always watch that 10 year, it is down to .68 this is bearish as of right now. Ideally crude should move with the market. Keep in mind the surge in virus cases has the potential to be bearish. Also keep in mind just how many people are counting on this market to stay up boomers, hedge funds, pension funds, fed, Trump for re-election. Long term we are definitely in a massive bubble, but it doesn’t have to pop now.
Look at the way the Robinhood traders have bid up these bubbles in Tesla, Nikola, and Hertz. Kinda like the dot com mania, I even heard of 12 year olds going on Robinhood and buying the dip. The days where these Robinhood traders type in random 3-4 letters ticker combinations, buy everything and everyone makes money without doing any research will come to an end. There are a lot of overpriced stocks that will have a dip that you won’t want to buy. The things that you do want to buy the dip on are metals, miners, commodities, and foreign stocks.
The Robinhood people think they can’t lose because either the economy will come back or the fed will print the stock market higher. But what they don’t understand is that if they just print the market higher, In hyperinflation where everything goes up forever stocks tend to underperform commodity inflation so their dollars won’t buy anything, which is why they should be buying metals and miners.
