Short
Editors' picks
ridethepig | Quarterly Updates in the Dow
Updated
📍 The Pinned Buyer
=> The move lower is justified, since Equities at these levels are as good as forced. After Fed and other CB intervention has stopped, it will inspire anything but confidence.
=> So a health crisis, thirsting for a vaccine allowed Equities to outperform last Q as a haven for the bizarre 'Keynesian stimulus'. The correct move was a dead-cat-bounce and early buyers were slight! Now that we have cleared the knee jerk phase, what will follow is an elegant catastrophe.
Let us look at that DAX chart for reference to the dead-cat-bounce:
After overshoots to the downside Buyers defended their game in an entirely rational manner, but now they commit a mistake which enables a snap decision for risk bears. Even those who are bullish on the ST outlook can admit these levels are unattractive in view of the fact that a second wave will oblige surrender on the activity. Remember re-openings are political fairy-dust, confidence is just not there and a quick look at VIX sitting above Lehman levels tells us this.
Here many roads lead to home. Unfortunately thanks to the presence of real risk into US elections and year end flows. Thanks for the support coming with likes, charts, questions and etc.
As usual keep the feedback coming 👍 or 👎
=> The move lower is justified, since Equities at these levels are as good as forced. After Fed and other CB intervention has stopped, it will inspire anything but confidence.
=> So a health crisis, thirsting for a vaccine allowed Equities to outperform last Q as a haven for the bizarre 'Keynesian stimulus'. The correct move was a dead-cat-bounce and early buyers were slight! Now that we have cleared the knee jerk phase, what will follow is an elegant catastrophe.
Let us look at that DAX chart for reference to the dead-cat-bounce:
After overshoots to the downside Buyers defended their game in an entirely rational manner, but now they commit a mistake which enables a snap decision for risk bears. Even those who are bullish on the ST outlook can admit these levels are unattractive in view of the fact that a second wave will oblige surrender on the activity. Remember re-openings are political fairy-dust, confidence is just not there and a quick look at VIX sitting above Lehman levels tells us this.
Here many roads lead to home. Unfortunately thanks to the presence of real risk into US elections and year end flows. Thanks for the support coming with likes, charts, questions and etc.
As usual keep the feedback coming 👍 or 👎
Note
Updates coming here for the weekend.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.