Trend lines from 2009 Bottom
Gap fill at 4000 and I think we'll meet the 200 MA at 3915
Major shutdowns and accelerated Covid cases could mean we keep on falling.
Taper tantrum or Illuminati conspiracy?
If the market swings lower then I'm looking to add to my position at $181, $177, and $172.
An open on the upside I'll try and catch a wave up to $215 and add some puts to cover a negative earnings report.
IF the run is done then this is what I expect to see for August. Fundamentally, they haven't come out with a cancer cure (yet) so I'm thinking this turkey is cooked. Earnings out tomorrow so we'll see when we'll get back to reality.
Just a thought - H&S correction into main Support (Blue Line) indicated by the blue highlights. It could happen this week or towards the end of May, early June. This week there will probably be support 42-43K and an attempted rebound that will sputter out under 50K if I'm right.
Looks like it can break up or down tomorrow. With low volume support and inflation concerns, I'm thinking it'll break down along with the rest of the market. Up to $181-182 and down somewhere between $161 -167. If it breaks down, I'll be looking for an opportunity to buy somewhere below $144.00.
10 yr. T-Bill auction tomorrow may determine - Up or Down. If it's anything like last month's 7 yr. auction then it'll be $Hit Show. Auction closes at 11 AM for the non-competitive auction and 11:30 AM (Eastern) for the competitive auction. Look for the signal and make your picks wisely. Also, Fiscal Stimulus should be passed tomorrow and the stark reality that...
$74-75 tomorrow looks pretty likely to me, but there should be heavy resistance to move beyond. My guess is a quick retreat to support around $65. If it fails to break $75 then it'll continue into an ABCD correction with the potential trendline and retracement levels marked. Good luck!
* Stock is up 1100% this year.
* It's trading at 27 times sales (not earnings)
* Average price target is $28 and is trading above the high estimate of $61 (low of $9.50)
* it isn't run by Elon Musk.
$38 price is still generous, but like John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.”
It looks like the end of the 5th Wave, where Wave 1 was extended and 3 & 5 made up .618 - Wave (5) is a contracting ending diagonal and It is bounded by two converging trendlines (red). A swift and sharp reversal usually brings prices at least back to where the diagonal began and usually far further. The reversal usually takes anywhere from one-third to one-half...
Barring no stimulus is passed and the market doesn't crash then I see it bouncing somewhere between $65 - $66 with resistance at $68, 73, and $76 moving back up. A breakthrough would probably mean $85 as a first target.