I sent this out last night to subscribers/readers
Equality? Fairness? Logic? The NEXT market bullish catalysts...Just imagine how much higher markets can rally during the next pandemic (that kills 500,000 a nasty economic recession where 15-20 million lose their jobs or the next insurrection where the streets bleed red with American blood due to lies the ass-clowns perpetrate (like FOX-News); the rise of FED-zombie firms, the creation of more and more zombie firms...what a great market we have where the elite and most wealthy get enriched and Main-Street pays for it, and the working class gets deiminated.
Another day, another and some more sweet gains for the locoweed fasting bulls, as stocks ripped higher once more to push the SPX-500 above 3,800 for the first time, a cool 70% above its March lows. Treasuries came under renewed pressure with the long bond yield jumping to 1.86%, leaving the 2-year vs. 30-year spread at its widest level since May pf 2017. WTI crude rose to near $51 a barrel, gold even edged higher to $1,915 an ounce and bitcoin rocketed like a scolded cat touching $40,300 after residing near $36,000 yesterday, it settled down through the afternoon. The VIX plunged 11% to settle below 22.5.
There should be no huge mystery (if you listened to my
reasoning yesterday) as to why the markets did not give a rat’s ass about what
happened in the Capital yesterday, however disturbing, disgraceful, and
embarrassing to us as a nation as it was. It is because it has no bearing on
the direction of the economy, earnings, and interest rates simple right.
Where is
the outrage?
There was close to 4,000 yes close to 4,000 Americans died on
01-06-2021 from Covid-19 and its mishandling, and where is the outrage, as on
911; there were only 2,977 people who died, and we went to WAR;
Yesterday a mob incited by King-Trump stormed the Capitol and since most were
white, they were handled with kid gloves when compared with what happened with
those who protested “Black-lives-matter” nevertheless, yesterday and again
today the stock market managed posting new all-time highs.
1. Stocks: all-time highs
2. Home prices: all-time highs
3. Corporate bond yields: all-time lows
4. Mortgage rates: all-time lows
5. Fed: we need many more years of 0% rates and bond buying
to boost asset prices & increase inflation.
6. Bitcoin: all-time highs
TSLA’s valuation vs. the other auto manufacturers!
[Toyota + VW+ Daimler+ GM+ Volvo+ Honda+ BMW+ Hyundai+ Fiat+ Ford+ Peugeot+ Subaru+ Kia+ Renault all combined]
TSLA Revenue: $28 billion vs Others $1.8 trillion
TSLA Market capitalization: $783 billion vs Others $780 billion
After a mixed bag from other soft self-serving
(cheerleading) survey data so far, analysts expected ISM Services numbers to
continue sliding lower in December, but instead the numbers took off like a
rocket.
·
ISM Manufacturing surged to 60.7
· ISM Services surged to 57.2 (smashing expectations of 54.5)
And all of that supposedly happened as real-hard economic
data continues to deteriorate...The picture from the underlying factors paints
a quite different picture with jobs tumbling...The ISM’s employment
measure fell to 48.2 after showing growth the previous three months. The pickup
in growth at firms that make up the largest part of the economy
is surprising given the increase in Covid-19 cases and tighter business
restrictions in some states. At the same time, the employment gauge contracted
for the first time in 4-months, showing the ongoing drag in the job market from
the pandemic. Aside from faster growth in business activity and orders, the
overall index was bolstered by a massive jump in the supplier deliveries gauge.
Similar to manufacturers, lead times at service providers may have lengthened
because of pandemic-related disruptions to supply chains... how is that a
positive??
My turn wave market timing property indicators has forecasted a potential turn-window, and the technicals are getting significantly stronger, and it pointing toward a HUGE inflection period ahead, the window is tightening as we get nearer to the potential turn....and according to my wave analysis we have multiple waves converging and a major Inflection point & Fibonacci collision of price and time waves/patterns and Gann topping [Gann lines, are based on the premise that prices move in predictable patterns. Gann's theory is based on time/price movements] possibility hitting the overall markets on/between 01/08/2021 and 01/15/2021 and since we have been in strong bullish up-trend from the March lows its likely to be a bearish reversal wave...the monthly and weekly index charts are also buried in extreme over bought conditions as well!
This
corrective wave could be (key-word is could,
we never know what we do not know) be the start of a significant major Bearish corrective period
...my system and analysis is telling me that this could be a significant
correction period lasting 21-29 trading days...with the potential for a slight
retracement after the initial down-cycle then another downward corrective wave
will likely play
Ø I
am looking for a potential
drop of 2000-3,000 Dow points
Ø I
am looking for a potential
drop of 350 - 350
Nasdog points
Ø I
am looking for a potential
drop of 250 - 285
SPX-500 points
Ø I
am looking for a potential
drop of 175 -
200 Russell-2000 points
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