First let's look at the Daily (left side):
- We hit a RSI of around 96 the second time and are highly oversold. The first time it market a temporary Top!
- Normally a stock moves in Waves. We detached from the MAs and are likely to return to the 50 ema earlier or later.
- Volume Analyses also shows signs of excessive bullish volume we normally see on overshooting...
As we were going up the last two weeks we were seeing exactly the same colors just like before the prior two drops. (purple)
Yesterday we finally saw a short term reversal signal. (blue)
I think it is time to tighten your stops, or do some risk management.
On the other side, we have not seen weak internals as we saw the two prior drops (red).
This would be the...
After the Volatility-Unwind 2 weeks ago we saw a rally last week.
My Marketcolor model raises concerns about the character of the resent rally and some market internals beginning to shift.
I see this as an alert so far and suggest to have a plan to hedge, when Volume picks up, and Vix raises.
Stay save and trade mindfully!
RSI is building a topping pattern and we are near the end of a rising wedge on the weekly chart.
Waiting for the breakdown now. Already having 1/2 of my hedges in position.
New taxes on big tech by the Biden Government and Trumps final move are the risks for tech.
All the FAANGMAN stocks are showing signs of weakness.
Add to this the Inversion of the 2-10 TSY...
This is an highly manipulated asset, the question is which whale is pulling the trigger first.
Many other will follow and retail will hold the bags. As everyone is going into bitcoin right now.
I have overlayed the RSI with an adaptive moving Average. It goes tighter on phases of high volatility .
There are 3 occurrences as marked in the chart, the two prior...
Tobacco has always been a save harbor. People will smoke and drink more being at home during the pandemic.
I hope they can expand into the cannabis; the future market.
Chart should explain the rest; finally gaining strength again.
Final move on TSLA is coming; Going back to the longtime trend.
Joining S&P TSLA will become part of this huge volatility complex.
We will see a correlation between TSLA and the index.
The News flow will be absorbed by real traders; Implied vol will be unable to rise as a consequence of this product
..... and call options will finally bleed.
Color should tell the story; blue is signaling a higher risk and a possible trend change.
You should watch the volume on the next drop, a higher volume implies this is a significant move.
Relative Low volume means this is a normal pullback.