SPY On Life Support Or On The Verge To Blow?
I think we can all agree the market seems to have just been crushing this past year, with TONS of money being injected in and specific large companies doing great throughout the pandemic...but when does this slow down?
The WallSteetsBet thing has some positives and negatives in my opinion....I am 28 so I feel like I am a middle child between two generation and have a good reasoning with both the older and younger generations. With that being said, WSB brought in TONS of new retail investors from the younger generation that Robinhood and Webull type platforms hadn't brought in yet.....dumping all their money in not only the "MEME" stocks but across all their favorite sectors....whilst the older generations that still watch the mainstream media see the market as a scam and their fear of "the kids trying to crash the market" has set in and they are pulling 401k and long term investments to get things like gold and silver....or just to hold cash.
Now back to this surge of new retail investors that came into the market, lets all be real here....the hedge funds are here to make money and they see this....my PERSONAL OPINION is that they let these kids get in, run some of these sectors up one last time(after that nice pullback/buying opportunity last week) make them feel good about their "investments" and then they pull the rug as many of these companies have had such great run ups since March....it seems like it would be great time to get some nice money off the top.
You can see the bearish divergence as well as the sell zones I have created in my attached 1 hour chart. If you pull up spy and look at the last couple double tops, like the one we are seeing here, it is usually followed by a decent size correction....but we shall see.
With all this in mind, I am only 6 months into trading and will be the first to admit I don't know the macros and behind the scenes like many others on here might....so please comment your thoughts and opinions so we can all learn!
The WallSteetsBet thing has some positives and negatives in my opinion....I am 28 so I feel like I am a middle child between two generation and have a good reasoning with both the older and younger generations. With that being said, WSB brought in TONS of new retail investors from the younger generation that Robinhood and Webull type platforms hadn't brought in yet.....dumping all their money in not only the "MEME" stocks but across all their favorite sectors....whilst the older generations that still watch the mainstream media see the market as a scam and their fear of "the kids trying to crash the market" has set in and they are pulling 401k and long term investments to get things like gold and silver....or just to hold cash.
Now back to this surge of new retail investors that came into the market, lets all be real here....the hedge funds are here to make money and they see this....my PERSONAL OPINION is that they let these kids get in, run some of these sectors up one last time(after that nice pullback/buying opportunity last week) make them feel good about their "investments" and then they pull the rug as many of these companies have had such great run ups since March....it seems like it would be great time to get some nice money off the top.
You can see the bearish divergence as well as the sell zones I have created in my attached 1 hour chart. If you pull up spy and look at the last couple double tops, like the one we are seeing here, it is usually followed by a decent size correction....but we shall see.
With all this in mind, I am only 6 months into trading and will be the first to admit I don't know the macros and behind the scenes like many others on here might....so please comment your thoughts and opinions so we can all learn!
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