-As we all know, COVID-19 was a hard period of time full of uncertainties. While many of us were scared that the market will maintain a bearish run for a good amount of time and that the effect of the Pandemic will show its negative effects throughout the years as the economists predicted too, the Market showed us a totally different scenario. Both the SP500 and...
Looks like we have formed a Double-Top with the SPXL! Potential drop to 8.60
-SPXL has successfully formed a corrective rising wedge that looks pretty bullish! -Past week's FOMC meeting also gives us some positive expectations. -They expect a decrease in: Unemployment rate: 4.5 (2021), 3.9 (2022), 3.5 (2023) PCE inflation rate: 2.4 (2021), 2.0 (2022), 2.1 (2023) -They also expect a decrease in GDP from 6.5 (2021) to 2.2 (2023). This...
Anticipate more red next week (sometime around Tue-Thur). Might get a little rallying Friday and Monday.
great way to capture the run in small stocks
Look at the expansion in the MACD /signal lines. We haven't hit overbought yet. If you step into a weekly chart and examine the last few major advances in the market before 'peaks' (2000 dot com bubble for instance), note that there is negative divergence on MACD and RSI well ahead of the actual peak. We've barely hit the base camp to look at the summit. Does this...
Double bottom divergence on RSI today. Looking at all the reversals from pullbacks before, this is an excellent time to open a LONG position in the SPY. Starting to see more of the same in my basket of stocks that looked pretty bearish the past few days. Loving that long term MACD trend line. Average volume spikes are not losing their intensity, but they're losing...
Setups that looked beautiful on Tues/Wed were pretty much broken by Thur. We usually see this happen right before a major pullback in the market (5-10%). We got a fake breakout on the SPY as it gapped up this AM. Sellers took control quickly and as I write this the market is retesting the flag it's been inside of the past week. The VIX is printing a positive...
TNA which is the Direxion Daily S&P Small Cap 3x leveraged is an ETF that I just came across. I usually trade TQQQ and SPXL while carrying a small position overnight in order to mitigate my risk from daily rebalancing of the leverage ETFs. TNA has run up under 980% since the COVID - 19 sell off and is approximately 40% above its pre - pandemic high. I have heard...
RSI is printing lower lows while VIX is printing higher lows on the hourly. I expect we will see this play out with some red in the AM. If you're looking to go long at open, take caution. LONG VIX.
Took a small profit on the VXX this morning after spotting hidden bullish divergence in the VIX yesterday evening. Opened a small position again on the pullback to support in anticipation of a small bounce the upper trendline of this descending sedge pattern. Holding off on opening long positions until this burns out tomorrow AM. LONG VXX SHORT market.
We saw prices closed below major support at 70.60 in the daily chart in Friday's session. It has failed two major levels so far. It held up above 73.40 for about 10 ten days before breaking down. Critical levels to watch in the upcoming sessions are around 70.60 resistance level; it needs to hold at this level to head back up. Critical support is at...
When in doubt, zoom out. Sometimes we miss the forest for the trees when we fail to take a step back. Open your mind to a broader range of data. There's simple math working behind every trend, of every candle, on every timeframe. Make a habit of studying those monthly candles every so often. It will allow you to see things you previously hadn't. Take a look...
Which option will she choose? The red or the green one, that is the question! Interested in your comments.
15 Min Renko had all the information about what this market has been doing for the last two weeks - looks to be bouncing off lower trendline this morning. We left behind a naked point of control to form this new pattern - we'll find out if it holds today or are we to complete the unfinished business at 3504.50
PRICE vs MOMENTUM forming a compression divergence. Notice the lower indicator and the trend on both sides. Price has been broadening the last few years while momentum/strength has been compressing. This is a hidden bull diverging into a massive bear divergence with the potential for a 3x touch here soon. Hidden divergences are historically weaker than regular...
Market moved down overnight but then went nowhere today - Looking at the chart I'd we're actually going to move up. I never use the TTM Squeeze Indicator - by John F. Carter but it does demonstrate how we had compression today of Bollinger Bands and Keltner Channels. We right between two Virgin Naked Points of Control - this no accident, designed to confuse...
At the top of trend line - looks like this upcoming coming week is down week. Overall the market balancing for a much bigger move.