The US10Y activity on the weekly chart has been forming a bullish pennant. This is consistent with the overall economic environment, which also supports rising interests rates. It will be interesting to see how this chart devleops, and if we can see interest rates approaching 2.25% by early July.
- Rising wedge on the QQQ
- 20 Day EMA is approaching intersection with 50 Day EMA
- Ongoing development of double top scenario on QQQ between Mar-May of this year
- ATR showing rising volatility , similar to what we've observed in the VIX in the past week and half.
- Volume on QQQ is divergent between UP and DOWN volumes. DVOL is rising, with slight...
The chart shows DVOLQ in green and UVOLQ in orange. Since YTD the DVOLQ has risen 14%, and the UVOLQ has fallen 55%. Over the same period, the nasdaq has eclipsed 14000 twice, both times being ATHs, all while bullish market participation dwindled and bearish slowly rekindled.
Thoughts about this?
In this idea i am looking at two main indicators. First the 20 day rate of change (ROC-20) of the 20 day EMA (EMA-20) of the price signal, and the daily volume signal.
The 20 ROC on the EMA (ROC-EMA 20/20) is the highest it has been since the early stages of the pandemic (April-July 2020). I chose the 20 day ROC because in choosing 20 days I will more...
This is a chart of the ticker PCC , where PCC is the put/call ratio ( PCR ). PCC reports the ratio of the number of put options to call options. A high PCR ( PCR > 1) indicates highly bearish sentiment, since puts are bought more frequently in one or both of two cases: First, investors buy puts to hedge their bets when they are afraid of a significant market...
Bears are winning right now, the stock is highly overbought, and has been for past weeks. Lots of hype about MJ stocks, but just not enough fundamentals to make this a sensible play right now. The bulls can't find buyers and the bears are selling as low as they can go.
I am eager to buy this stock because of its strong financials, its strong dividend, exemplary stewardship, and its current valuation, which is significanlty less than its fair value estimate (~$21/share current, compared to ~$29/share est. fair val.).
However, due to its recent price increase I am not confident to buy this stock now because I have a gut feeling...