Snowflake - Fade Bears On Another Earnings Dump
Updated
When it comes to tech stuff, I'm a contrarian and actually believe that Nasdaq is heading to 14,000+.However, as seen in my call below, I'm still expecting more of a bear trap than we've currently had.
Nasdaq NQ QQQ - Reality Will Be a Tough Pill for Permabears
I simply don't believe that, based on the price action of the markets over the last 6 and 8 months, that wobbly fundamentals and the Federal Reserve continuing to hike rates is going to be what crashes the market. All markets act like they bottomed in October and November of 2022, which to me says that prices must go higher.
That being said, I also believe that a severe market crash lies ahead in the future, but I believe that the timing for it to unfold is July or August of this year. I also believe that geopolitical issues will be what cause the crash, not the Fed, and there are a number of them:
1. The Chinese Communist Party has lost millions of people to Wuhan Pneumonia. The situation is so much worse than the 90,000 deaths the lying communist regime claims that it's scary. This ultimately leads to China's infrastructure, military, law enforcement, and the Party itself being extremely weak.
2. Russia v Ukraine is set to escalate shortly, and the war isn't one bit "Russia v Ukraine," it's Russia versus the U.S.-led NATO block
3. Natural, manmade, and environmental disasters abound in this world and go unreported. One day, one of them will hit the United States and it will shock the markets.
But the big one is #1. The fundamental problem for the world is everything about the world's oldest country right now revolves around the CCP's almost 24-year-long persecution of Falun Gong meditation. The Party has killed so many practitioners for their spiritual beliefs, and even committed the unprecedented sin of live organ harvesting, a sin that even Nero didn't commit in the persecution of Christians 2,000 years ago.
Because Wall Street and the governments around the world have been providing financial, material, and political support to the regime over the entire course of the 24 year persecution, this inherently means that when the CCP falls and all the skeletons come out of the closet, you're going to have a hard time finding a place in the world that has clean hands.
When that unfolds, it will really be hard for the market makers to keep making the market. The house of cards will really crumble. Educate yourself on the topic and go see Shen Yun when it performs in your area and see what China's dynasties were really like.
As for the call, Snowflake had some good earnings but cut its growth outlook. This is a stock that trades in these really wide $40 and $50 ranges and has a Tesla-style volatility. Nonetheless, we're down 7% in postmarket and it should dump even further than that tomorrow when the markets open.
We can tell from the long term price action that January's low was a clear stop raid, which turned around and took out two big daily pivots. It's a little early, being the very beginning of March, for a new LOY to be set, in my opinion.
But it's not too early to bear trap and liquidate longs. What I'm really looking to see is the $130 - $135 range in conjunction with the Nasdaq hitting 11,500 range. This price corresponds with the 79% retrace and is a big discount to overall range equilibrium since Snowflake dumped from its COVID pump mania highs.
Target to the upside would be $185, taking out the October pivot. Hard not to like a $50 move on a $130 stock.
You want to buy red and sell green, but this gets hard when red is followed by red and green is followed by green. All and all, I still say fade the bear hype.
When the doom really comes to these markets, it's going to catch everyone off guard. It's not going to come at a time when the Fed has slowed hiking to 0.25% and CPI is only printing 6%.
Nasdaq NQ QQQ - Reality Will Be a Tough Pill for Permabears
I simply don't believe that, based on the price action of the markets over the last 6 and 8 months, that wobbly fundamentals and the Federal Reserve continuing to hike rates is going to be what crashes the market. All markets act like they bottomed in October and November of 2022, which to me says that prices must go higher.
That being said, I also believe that a severe market crash lies ahead in the future, but I believe that the timing for it to unfold is July or August of this year. I also believe that geopolitical issues will be what cause the crash, not the Fed, and there are a number of them:
1. The Chinese Communist Party has lost millions of people to Wuhan Pneumonia. The situation is so much worse than the 90,000 deaths the lying communist regime claims that it's scary. This ultimately leads to China's infrastructure, military, law enforcement, and the Party itself being extremely weak.
2. Russia v Ukraine is set to escalate shortly, and the war isn't one bit "Russia v Ukraine," it's Russia versus the U.S.-led NATO block
3. Natural, manmade, and environmental disasters abound in this world and go unreported. One day, one of them will hit the United States and it will shock the markets.
But the big one is #1. The fundamental problem for the world is everything about the world's oldest country right now revolves around the CCP's almost 24-year-long persecution of Falun Gong meditation. The Party has killed so many practitioners for their spiritual beliefs, and even committed the unprecedented sin of live organ harvesting, a sin that even Nero didn't commit in the persecution of Christians 2,000 years ago.
Because Wall Street and the governments around the world have been providing financial, material, and political support to the regime over the entire course of the 24 year persecution, this inherently means that when the CCP falls and all the skeletons come out of the closet, you're going to have a hard time finding a place in the world that has clean hands.
When that unfolds, it will really be hard for the market makers to keep making the market. The house of cards will really crumble. Educate yourself on the topic and go see Shen Yun when it performs in your area and see what China's dynasties were really like.
As for the call, Snowflake had some good earnings but cut its growth outlook. This is a stock that trades in these really wide $40 and $50 ranges and has a Tesla-style volatility. Nonetheless, we're down 7% in postmarket and it should dump even further than that tomorrow when the markets open.
We can tell from the long term price action that January's low was a clear stop raid, which turned around and took out two big daily pivots. It's a little early, being the very beginning of March, for a new LOY to be set, in my opinion.
But it's not too early to bear trap and liquidate longs. What I'm really looking to see is the $130 - $135 range in conjunction with the Nasdaq hitting 11,500 range. This price corresponds with the 79% retrace and is a big discount to overall range equilibrium since Snowflake dumped from its COVID pump mania highs.
Target to the upside would be $185, taking out the October pivot. Hard not to like a $50 move on a $130 stock.
You want to buy red and sell green, but this gets hard when red is followed by red and green is followed by green. All and all, I still say fade the bear hype.
When the doom really comes to these markets, it's going to catch everyone off guard. It's not going to come at a time when the Fed has slowed hiking to 0.25% and CPI is only printing 6%.
Note
Well, she already hit the 79% retrace. Thank cascading liquidations I suppose.14% in a day on equities is pretty good. But tomorrow is ISM PMI and we've got two Fed jawbones coming up this afternoon.
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