Great stock market update video. What does the bounce mean?
I am feeling pretty sick this week, so not going to record a Stock Market update video.
The Chart Guys have put out a great video which just said everything I would have gone through anyway. I learned a lot of what I know from them. They are great:
It always fascinates me how critical moments in the stock market seem to always line up with real world timelines. It's spooky how Technical Analysis always aligns with what's going on in the real world.
The problem the Stock Market has right now is that it needs to follow through on this bounce to break the daily downtrend on SPY. Right now the charts are definitely looking healthy enough to do this [I even bought some stuff myself yesterday for the first time in a month], but we're heading right into Bloody Thursday. You guys have probably heard me say a lot how Thursdays are almost always red in the Stock Market. This means if we don't get major bull follow through to change daily downtrend on SPY on Wednesday, it's probably not going to happen, which means another lower high will be set and this will almost certainly trigger another nasty leg down of selling. We can't have this kind of thing happen too much more because right now it could be argued that SPY is in a weekly equilibrium instead of a full blown daily downtrend. If we close a daily candle below $3687, then a daily downtrend would be confirmed beyond all reasonable doubt and we'd likely get quite a nasty move down like what happened with the covid dump.
Will be interesting to see how this plays out.
A couple of days ago I closed my shorts and used the money to buy NNDM, CRSP, BA [looking bullish as fuck], YUMC and AAL. I'm hoping we get a big green day on Wednesday to break daily downtrend on SPY. Then have a little sideways action rest of the week, before party really gets started and we get another leg up next week. I'll be buying like crazy this week on Thursday and Friday if we follow through and break the daily downtrend on Wednesday.
Thanks for the update Chris, I enjoy the stock picks as I'm currently looking for stocks to buy when my USA shares account opens