Energy and Tech are toast, $SPXS Look for New Lows in the S&P
Consumer confidence is high but the only way for this ship to turn around quick is for the Fed to change strategy, that will not happen.
Rising interest rates are providing competition to stocks as they have throughout history. To make matters worse, we know the Democrats are going to start the process of throwing Trump's political future in to doubt along with any kind of certainty about the economic conditions going forward. Foreign leaders will start to believe the progressive newspapers (foreign leaders still read newspapers) and think they can just wait the lame duck president out. Mueller may even come up with something to get folks all excited about "collusion". Democratic Socialists will start talking smack about how they are coming after your money and Bezos' money and it may seem believable for a few weeks.
The next trading session after my related post on shorting the S&P 500, it gaped higher ran up and offered the perfect short entry as it made another lower double top since the all time high. Now we hover once again below the 200 day MA. In my opinion we are yet to see full capitulation. Neither the energy sector nor the tech sector are ready for a rebound. The SPX Relative Strength Index is losing steam.
Folks should buy their Christmas gifts while they still feel rich. At this point it looks like SPXS will be the best way to pay for those gifts as we head into December.
Look for the S&P 500 to hit 2530 and possibly even 2400 in the coming 6 to 8 weeks. Then it will be time for a shopping spree in the Tech sector.
Rising interest rates are providing competition to stocks as they have throughout history. To make matters worse, we know the Democrats are going to start the process of throwing Trump's political future in to doubt along with any kind of certainty about the economic conditions going forward. Foreign leaders will start to believe the progressive newspapers (foreign leaders still read newspapers) and think they can just wait the lame duck president out. Mueller may even come up with something to get folks all excited about "collusion". Democratic Socialists will start talking smack about how they are coming after your money and Bezos' money and it may seem believable for a few weeks.
The next trading session after my related post on shorting the S&P 500, it gaped higher ran up and offered the perfect short entry as it made another lower double top since the all time high. Now we hover once again below the 200 day MA. In my opinion we are yet to see full capitulation. Neither the energy sector nor the tech sector are ready for a rebound. The SPX Relative Strength Index is losing steam.
Folks should buy their Christmas gifts while they still feel rich. At this point it looks like SPXS will be the best way to pay for those gifts as we head into December.
Look for the S&P 500 to hit 2530 and possibly even 2400 in the coming 6 to 8 weeks. Then it will be time for a shopping spree in the Tech sector.
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