Hedge_Of_The_World

Hedge_Of_The_World

US Futures drifted higher overnight, but are losing steam as we approach the cash open. Jobless claims came in better than expected at 751K, vs expectations of 763K, giving stocks a brief bounce. While this might be a beat, and marginally better than last week's print, this is 4 times what we saw pre-lockdown. Continuing claims came in at 7.75MM, which was notably...

Hedge_Of_The_World

This is just a thing of beauty. We called this one over a week ago, and I just want to say congrats to all the bears who traded this one smart. Well done on this trade! The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.

Hedge_Of_The_World

Global markets are tanking, and Tesla just lost a key long-term support this morning. The bulls need to recapture 415 today to prevent further downside. If they fail to do so, and particularly if we end the week below the long-term Green line support, the next major support is at the 100 day MA around 344.40. I'll be posting updates throughout the day so stay...

Hedge_Of_The_World

Global markets are in free-fall. After losing key supports yesterday, US Futures extended losses, with the majors down around 2% on the open. Vix hit it's highest level since June with a 38 handle, and was up as much as 14% on the day this morning. With the senate adjourned until the 9th, and no deal in sight (before the election), along with a resurgence in...

Hedge_Of_The_World

Hey guys, sorry for the last post today. Let's get right to it. So European and Asian markets were notably lower overnight, while US Markets were relatively flat this morning in seesaw fashion. Vix saw a new high at 33.80 earlier, off the back of some minor weakness on the majors, but lost steam as we entered the afternoon session. SPY had a short-lived rally back...

Hedge_Of_The_World

After kissing it's 21 day EMA (426.10) this morning, and then erasing most of the day's gains, Tesla is now sitting at it's long-term Green line support (around 400), for the second day in a row. If we break below 400, we could see massive downside to the previous probe at 351 on Sep 24th, and the 100 day MA at 339.66, which is the next major support. With...

Hedge_Of_The_World

This morning, White House advisor Larry Kudlow put a damper on hopes of a stimulus deal before the election, when he mentioned there are a number of demands from Pelosi and the democrats that Trump simply can't accept. Futures were already showing signs of weakness in early morning trading, before Kudlow's remarks, and stocks are now extending losses as we...

Hedge_Of_The_World

Price to Earnings: 1,087.43, Price to Sales: 15.32, LTD/E: 106.14, why should anyone buy this stock guys? I'm really asking?

Hedge_Of_The_World

Hey guys, so yesterday was a rollercoaster ride, with another notable sell-off into the close. After some light selling in the evening, futures regained some ground, and in pre-market trading, SPY is back at yesterday's close at 342.67. Markets in Europe and most of Asia are also seeing some selling pressure. On the daily, bears succeeded in defending the Green...

Hedge_Of_The_World

Interesting price action at these levels. Looks like we may continue to trade sideways for a bit, before a potential move to the upside. Let's see how this week plays out, and if the bulls can recapture key supports on the majors.

Hedge_Of_The_World

Hey guys, so in what appeared to be shaping up as another over-night pump in futures, S&P futures traded as high as 3451 this morning, making a run for the Green line resistance, and recapturing the 100 period MA on the hourly SPY chart (343.17) for the cash open. We bounced off the 21 day EMA yesterday (341.54), and absent a close above this level today, we may...

Hedge_Of_The_World

Hey guys, so it was another convincing pump at the open, followed by a sharp sell-off toward the Green line support (346). On the hourly, things are looking very bearish, as we just broke below the 50 period MA for the third time since it became support on on Sep 25th. If we lose 346 support today, we could see a retest of last Thursday's low of 343.13 before we...

Hedge_Of_The_World

Hey guys, so vol is holding the 50 day MA, we're now back above the 100 day, and about to break above the first downtrend resistance line (in white) around 28.50. We've been in an uptrend for a week or so, with bullish price action in risk assets. It's important to note that there's upward pressure building in vol, just as more and more investors turn bearish on...

Hedge_Of_The_World

Hey guys, so it was a fairly quiet night, with the majors all essentially flat into this morning's retail sales numbers, which came in hotter than expected. US stocks caught a bid on the open (usual morning pump), until around 10:30am when momentum briefly shifted to the downside. On the SPY, we just broke back below the 100 period MA on the 15 minute (349.33),...

Hedge_Of_The_World

Hey guys, so let's get right into it. Interesting price action this week with the SPY gapping down over night, and bouncing back off the Greenline support this morning (now sitting around 344), after a few days of light selling. Headlines starting to turn negative here, with "stimulus pessimism" being blamed for much of the sell-off. Market up = stimulus...

Hedge_Of_The_World

With the majors at all-time high's and vol getting cheaper by the day, let's take a look at what the technicals are saying. With the exception of Monday and Tuesday's close this week, we've been trading above the 50 day MA since the end of August, and the fact that the 50 day is now rising, translates into bullish price action. Today we got a solid bounce off the...

Hedge_Of_The_World

So yesterday we closed comfortably above the Green trendline (now acting as support once again), and we're sitting just above the all time weekly closing high of 350. Well done to the bulls! Shorts now appear to be extinct on this one-way MMT highway. But, a potential double top formation on the weekly is emerging, and a move back below the Green trendline could...

Hedge_Of_The_World

If you showed this chart to a 1st grader, and said, "What happens next?" I wonder what their response would be... My guess is, they'll say, "It goes down from here, for a long time." In my opinion guys, if you're not bearish right now on risk assets, you may have bought chips at the casino because you saw Trump, the FED, the Treasury, and the Media, sitting at...