Pfizer is showing signs of accumulation past few months which means a markup phase is coming very soon. I am assuming the market already knows some major catalyst is in the pipeline.
In this post, I have shown the put-call ratio which is a reliable measure of sentiment in the market. When everyone is optimistic, that's typically when the market tops out.
Using Elliot Wave and COT data, I am making a case that gold is probably topping out very soon and a sharp correction should follow. When everyone is bullish, that's typically not a good time to be bullish.
1. Moderna is extremely oversold and we’re starting to see a very reliable bottoming pattern; i.e. bullish divergence on the RSI. This exact setup was seen few months back (see chart) and that’s how I called the bottom back then. 2. Given all the news about bird flu, not only does it put a floor underneath this stock but makes it quite likely a major rally...
After the selloff in early August due to the Yen carry trade, panic levels exploded. However, over the past 3 weeks, the market is back to extreme complacency and that's not a good sign for the bulls.
Over the past 10 days, the SPX has had a very strong bounce. These aggressive moves are typically indicative of bear market rallies, as opposed to bull market rallies.
This video is an analysis on the Wyckoff accumulation setup. All aspects of the method are being checked off so it's just a matter of time before we get a breakout due to a "catalyst in the news". Obviously, good news for the vaccine sector will probably be bad news for the overall market.
This setup is a swing trade which could last a few weeks. It seems like zoom is forming a major bottom due to the reasons mentioned in the video. Appreciate your feedback !
I've used 2 indicators, namely, RSI and Bollinger Bands to make a case as to why price is unlikely to go higher.
Global indices are are not supporting this recent break to new all time highs (by the American indices). This is a negative divergence which is a warning sign as per historic signals.
The overall setup of the markets as combined with the vaccine stocks rallying is a very ominous sign. This could mean lockdowns could be coming back this summer due to bird flu. Disclaimer: This is NOT financial advice to buy/ sell any instrument; just my speculation.
Even though the SPX has broken to new all time highs (led by the nasdaq), it is not being supported by the internals. This might quite likely be a false breakout.
I have analyzed the SPX using 2 common indicators; i.e. RSI and breadth above 200d SMA. A very similar setup was seen just before the 2018 correction and the 2020 crash. This recent rally of past 5 months is bigger and more irrational than the previous two rallies. Thus, we should expect a bigger move down over the long-term.
Pfizer looks ripe for a bullish breakout so expect a catalyst to show up VERY SOON. "charts predict the news
I have looked at the charts of Moderna and explained why I'm so bullish this stock as well as the general sector. We should expect a catalyst show up in the news in the very near future which should cause a big spike in this sector and that cannot be good for the overall market.
I've shown multiple rallies over the years as a comparison to the current rally. Currently, this rally has been 25% in 18 weeks which is clearly the biggest in the past 12 years and most likely in history.
I've taken a look at multiple asset classes; i.e. global indices, crypto & gold which are all rallying into a cycle week. Further, all global indices are extremely overbought which increases the likelihood of a turn around. This signal is extremely rare and if everything is turning downward from here, the catalyst will be a PRETTY BIG DEAL. As always, charts...
I've used 3 indicators, namely, MACD, RSI & BB width to show the idea of momentum building up in the background. If VIX spikes that's definitely not a good thing for the markets. Volatility is a mean reverting animal so its just simple statistics that a big spike is coming. TIMEFRAME: If vix starts to pop this week, the rally could end 3-4 weeks from now.