Data out this month show slowing business activity & new orders relative to the prior month, compounded with an unexpected slowdown in wage growth, forecasting a pullback from here with a complete patterns is logic.
My concerns of anything more than a pullback are subsiding, Chinese PMI is in expansion once more which is confirming that the majority of poor economic performance is likely finished.
Over the next 6 months we expecting to see hard data underperform, compounded with a rising dollar it is a headwind for equities.
From a macro top-down framework, the current environment heavily favors the bears. The leading data continues to show expected weakness in the economy over the coming 3-6 months.
I would love to hear your feedback, have a wonderful day!
When you short a stock you are taking on infinite risk, if the roles were reversed I would not be as tactical with this position. For now, it looks like we will trade slightly higher before another opportunity to short appears.
An analysis on BTC and AMD today with an overview on some interesting features on WAVE PM that allow for predicting large moves before the range even breaks!
Some very powerful tools and paradigms are at work here, if you'd like to learn more about the indicators do follow the links in the signature.
Although earnings are set to grow by 75% this year, AMD has rallied roughly 30x off the 2016 low into the highs in 2018. There is currently a disconnect between perception and reality with p/e at 75 and p/b at 19.