US30 still short?Strong channel forming and we could see it play out as a bullish flap pattern or fall down to the bottom of the channel....which one do you think? I am short
Indecies
Fourth time's the charm for SPX?While the FOMO effect kicks in for equities, the US indexes are making new fresh highs in the midst of renewed trading war uncertainty. Lower rates are indeed boosting stocks, but we are coming closer to a point where things may turn South at least for the near-term.
SPX has more room to go up, but I would expect the movement to be limited at the marked point.
Situation has changed for stocksWith the recent negative changes in the fundamentals, the direction in stocks has taken a sharp turn south.
Even though FED has cut the rates, it was already priced in, and stocks didn't go to the roof.
With the perfect timing from Trump, he threatened to implement new 10% tariffs on China imports.
Current bias remains BEARISH strong and I am expecting a movement down towards the low diagonal line, which has proven to be strong.
First line of defense though will be at 78.60 Fibo in the 2906 price level zone.
SPX ready to attack the 3091.2 zone?Is the S&P500 finally ready to breach the to resistance and go for the 161.80% Fibo?
Zone at 3091.2 looks open now, but the price has landed just a bit above the long top diagonal resistance. Demarker is also moving inside the overbought zone, which indicates that a strong buy impulse is going to follow, before the price starts to fatigue and the movement to reverse.
Dollar Short Idea Cypher XABCDBoth Patterns meeting at same point of reversal. AS I post other pattern is forming on daily time frame link is attached. Reversal gonna occour on that 786% retrenchment which is a physiological supply area..
#ALSI Sell in May and go awayThis could turn out to be one of the worst months in years. One week left.
#ALSI Good rally by the bullsI must admit that this rally extended further than I anticipated. So much so that I had to make an adjustment to the red trend line. ALSI have run into resistance, and a pullback is overdue in my opinion.
Were not out of the clear yet.DONT BE OVERLY EMOTIONAL
If you are eating up those bull market headlines you will most likely get burned. Dont let CNBC finnsesse you into the herd mentality.
Things you have to ask yourself before you long
A. Is the economy strong...
"Dar_klord! Of course the economys strong! Fed is raising interest rates! Unemployment is at an all time low! This is just a correction! Long live the bull market!" Well plebian, let me fill your fallopian tubes with a little bit of my fundamental nut. This tax bill has harbored an extremely speculative market. Companys margins are at an all time high from tax breaks. Share buybacks are happening left and right. The indexs are where trading way above their historical standard deviations before the 29th. I would argue that these gains are not EARNINGS BASED. The market is over valued. Combod with tarrifs and FANG stocks are running out of team. The participation rate is actually pretty low (around 60%).
B. What does the technical say?
While this move today was a big ol 1%, it seems this volatility is here to stay and we should expect these moves. If we see another move down tomorrow that would confirm this bearish wedge I drew. The double bottom is promising but I wouldn't rule out going lower for a big PHAT ABC correction. Then again, tmrw we could get a nice big day and switch everything up. But hey thats the market for u.
Happy Trading
The bigggest nutsack in town
- Darklord_
*This is not a recommendation to buy or sell*
