PSQ has been in an uptrend since February 17th. With especially high volume on February 23rd, 25th & 26th and March 3rd & 4th. My thesis on the recent market weakness, is that dip buyers of the 2020 covid market crash, have become sellers 365 days later taking profit in 2021. The 2020 stock market crash began on February 20th 2020 and ended April 7th 2020. So most...
PSQ is trading inside a 1M (monthly) Channel Down (RSI = 36.191, MACD = -3.690, Highs/Lows = 0.0000) which last December made its Lower High. A Death Cross (MA50 under MA200) formation occurred in March on 1D and after a 27.60 bottom, the price has been rebounding towards the MA200.
Last time the same pattern occurred was in 2016. The rebound resulted in testing...
OBV and money flow starting to tick up although other indicators (MA & Oscillator) say its a strong sell.
Who will prevail...?
If Rally or China deal stalls this is good short term protection.
Strategy for the upcoming 6-12 months
1. Long PSQ: Tech Industry will lead this crash. Buy the inverse QQQ ETF
2. Long Cryptocurrencies: Will become a safe haven.
A possible option is to long precious metals however, these will underperform #1 & #2
Be Safe & Best of Luck to All.
This is part 3 of three views. The PSQ are the short shares you buy if you think the QQQ is going to decline.
IF YOU READ PARTS ONE AND TWO YOU WILL BE FAMILIAR WITH THE FOLLOWING ANALYSIS.
I BELIEVE THE STOCK MARKET IS SETTING UP FOR A SEVERE DECLINE.
I wanted to look at the S&P 500 , DOW-30, and QQQ to study Fibonacci time cycles and also to see if there were...