Visa has been forming a big wedge since the COVID crash back in March 2020. I'm expecting this to break up, but it can go either way. This is something to keep an eye on as a break would likely be fueled by news and would be massive.
Looks close to buy range for me, but I’ll wait till it finds a bottom ~
wallstkings
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@Silverstone127, Yep same here, I'm waiting for either a bounce at the solid green support or a break down which I will short with some puts.
CJS04
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Who taught you how to chart? very poor charting skills
wallstkings
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@CJS04, seems like you have a 3 year chart while I'm looking at the 12 month. I like your chart but you're comparing one timeframe to another- apples to oranges.
CJS04
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@wallstkings, fair enough.. I guess Investor or swing trader vs day trader is the difference. Anyway.. 146s I would think are coming in the next couple months (by Julyish?). Assumption.. but would make sense.
wallstkings
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@CJS04 146 is possible, but I could only see that if we saw a market wide crash or pan selloff. Is that what you're thinking will happen around that time?
CJS04
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@wallstkings, I do think we need a big correction in the coming months... alot of things point to a potential time frame of the coming months as well. Well see... I notice alot of things fell and are only making lower lows and lower highs... HD I have to admit has taking me by surprise since I was short at 284 and might just take the loss and jump back in. I think 307-312 are possible for HD. A break above the long term "wedge" top and 307-312 would make sense in some ways. But yeah.. I think a correction isnt to far off (coming months if not sooner) I think its needed.... everything is just at prices that make absolutely zero sense when you look at the long term charts. Plus the vertical movement never is a healthy or long term reality. I think a major correction is coming and hopefully resets the charts to what they should be. I just cant get behind this market at this point... ROKU to 480? TTD to almost a thousand? All the $5 stocks that became $200 stocks. They left no stock untouched... I think the bubble needs to pop in a big way. Well see... Sometime in the coming months? I dont see many of these stocks making any new highs.. just lower highs, lower lows for the majority of them.... Like Apple, Adobe, etc.
wallstkings
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@CJS04, No doubt about that, the market is very overvalued here. But my question is when and why will it stop? With all the new debt expansion and newfound control from the Fed (who only cares about Wall St) I have to say that I don't see anything too big coming unless this debt is stopped or slowed. Of course the market will have its corrective waves no matter what, but with the influx of new investors and inflation (which will really take off when money velocity picks back up) this stock inflation *somewhat* makes sense to me. A $146 Visa does seem reasonable to me though, since its only a 25-30% implied drop.
CJS04
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@wallstkings, I really dont have the exactly when and why answers. Tax hikes? I learned to tune news off and just follow the chart as my emotions get in the way otherwise. Let me ask, what do you think of this on QQQ (tech) I see 180s , the green supply zone. Amazon, that level at about 2010.00 Although it might have to crash through the trendline to get there if it waits to much longer. CPRT... possibly the 60s, but if not the very low 70s Am I nuts? I just think all of these make sense when looking at their long term trends.... nothing else makes sense to me. I dont see any other route for it to go? So when I look at these charts and theres many more... I keep coming to the same conclusion, the only logical thing is a correction to come. But maybe I am nuts for thinking that?
wallstkings
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@CJS04, I agree with you, it's definitely possible but if you look at the m2 combined with the low money velocity this does look like a rather perfect situation for stocks- "inflation" without the drawbacks. I definitely agree with what you're seeing on the charts- I think a medium sized correction is likely in the near future, but I don't think this "easy money" for the markets will stop any time soon.