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Bitcoin to 7300 While Markets Follow Lower, Except for Gold!A great deal of uncertainty continues to plague the markets. It is very notable in how markets are being traded during the session. Today, I want to run through a number of charts before Fed Chair Jerome Powell speaks tomorrow. Let's touch upon Bitcoin, the Euro Stoxx 50 (EU50), the Invesco QQQ Trust (QQQ) and SPDR Gold Shares (GLD). Markets Finally Signaling Reversal? And for the 100th time we call the top! Yea, that was a joke. All I know is that markets are looking top heavy. A larger reversal pattern is more likely in play. Though, we have no knowledge of yet. In the interim all we can do is play what the market has given us at the close. Let's begin with the EU50. I touch upon this chart a few day's ago when I noticed that the EU50 was vastly under performing U.S. markets. See the 4-hour chart below. Currently, the EU50 is breaking down from a bearish pennant. Support is around the low 2770's. We will continue watching Europe closely this week. Keep in mind Europe is easing restrictions and the economy is opening up. The economy is still vulnerable to closure. Bias: Bearish . Next, let's review the daily close of the QQQ. Below is the daily chart. Since the March low, I believe today will likely mark the most bearish daily candle close of the entire rally. Today produced a bearish engulfing candle, engulfing the previous two days. Of course now we need follow through. On top of the bearish engulfing candle is the rising wedge pattern. A few days ago I mentioned that we could see a throw over. A throw over is a common occurrence and happens when price over shoots the ascending boundary briefly. Although still early to confirm whether this is a real reversal, I wouldn't be buying any dip just yet. Bias: bearish . Last bearish chart. I promise. Here is Bitcoin's 4-hour chart. Yes, I know we are heading to the moon and Bitcoin should be valued at 100k. But let's press the breaks a bit. Bitcoin has rallied over 100% since the March low. If you hadn't taken profits, I am sorry. Go ahead and buy the dip around 7300 support. However, If Bitcoin continues to consolidate at these levels I will begin to flip bullish for a relief rally. For now.... Bias: Bearish . GOLD I promise I am not a permabear. My proof? Below on the daily GLD chart. I am not going to kid you, the longer this pennant consolidates the more nervous I am getting. Tomorrow, I do expect the pennant consolidation to resolve itself. The Fed Chair words could determine the trend direction of Gold. Currently, I am long GLD. The close was promising today. I'll be making a decision whether to hold or sell tomorrow. Currently... Bias: Bullish . Tomorrow is HUGE The markets are either consolidating or at resistance. If you are trading inverse ETFs they are at support. Tomorrow when the Fed Chair speaks he will move markets. Regardless of what happens, there will be ample opportunities available afterward. Talk to you all tomorrow!
COINBASE:BTCUSD
by DailyClose
What are Tesla Bulls Waiting For?U.S. Markets finished up over 1% for the day, setting up an interesting end-of-week trading session. The jobs report lands tomorrow at 8:30 AM EST. and will likely determine the next trend. Today we will go over the PowerShares QQQ (QQQ) and Tesla, Inc. (TSLA). But, first I want to mention that a few days ago I posted a GLD chart stating that it was setting up for some upside. Today may have the start of that upside. Could the market be front running the jobs report tomorrow and could Gold be the sole beneficiary? Another hot name of note today was Square, Inc. (SQ) which blew up for nearly 10%. If you read over a week ago I mentioned that SQ was setting up with a cup and handle pattern and a measured move target of 73... target met. All the "HOT" Tech Names Reported...Right? It's obvious, tech has contributed to a vast majority of the rally off the March low. That is why I have been tracking the QQQ so often. The question I have now is, have all the hot tech stocks reported earnings? Nividia is the only one I can think that hasn't reported yet. Just something to think about. Below is the 4-hour chart of the QQQ. I zoomed in a bit to get a cleaner shot of this rising wedge. Normally bearish, though there are instances when there are upside breaks. At times there are throw overs . Which happens when price breaks out from above the wedge then quickly reverses back into the wedge. Typically this turns out to be a strong reversal and has happened before on the Nasdaq-100 (NDX). Check the chart below. The result of the throw over can be seen above. Unfortunately, back in September 2018, price reversed back up but eventually met the lower bound of the rising wedge which acted as resistance. Eventually, the NDX declined 23%. This is the scenario I am looking at. Current price action may lead to a throw over so watch for this potentially tomorrow. Bias: Bearish . Elon and Joe...Again I haven't listened to or watched the latest stint of Elon Musk on the Joe Rogan Show, so I can't speak to that. I can talk TA, and TSLA, a normally volatile stock traded sideways today netting a loss of -0.32% for the day. Perhaps the calm before a larger move to come? Below is the 4-hour chart of TSLA. Chaikin continues to mimic itself from over a month ago. Price is also consolidating at the high below resistance while inching closer to trendline support. The longer it takes for the TSLA bulls to follow through the more bearish this chart gets. Keep an eye on TSLA the next few days, as it may be the key to the market. Bias: Bearish . I'll be posting early in the morning ahead of the jobs report. I'll be taking a look at the VIX and Silver. Have a great evening!
NASDAQ:TSLAShort
by DailyClose
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