Tell me if I’m starting to sound like a broken record here but here is what I wrote on July 4th and the markets continue to play out to the tee.
“The path of least resistance remains higher however we are very extended at this juncture so a quick pullback would be in order in the very short term. That being said nothing has changed fundamentally with the current market narrative so even in the event of a pullback I’d expect buyers to once again step up to absorb the selling.”
If you haven’t been paying attention then here’s the current playbook and what I wrote 2 weeks ago –
“There’s one thing for sure and two things for certain – the US equities market is in a runaway bull market and that those who chase and get stopped out continue to be the fodder for higher stock prices.”
This week is filled with headline risk and with the SPY & QQQ going into all-time highs along with F-MAGA (FB/MSFT/AMZN/GOOG/AMZN) going into Bollinger Bands highs are stocks now priced for perfection going into earnings?
Last quarter’s lows on Bitcoin and Ethereum have remarkably held up and until those lows are violated I continue to be in the stance that we are still in a long-term uptrend.
Price action for BTC and ETH are still firmly inside month and quarter and while the major coins are consolidating we are now seeing the crypto gaming space differentiating itself from the rest of the crypto ecosystem.
Here are some of the ideas in this week’s video:
– VXX doing what it always does best – pop and fade
– Analysis of SPY/QQQ – all-time highs – yellow flag going into Bollinger band highs
– DIA/IWM analysis –
– TSX analysis – back to all-time highs
– EEM/KWEB – potential bottom forming however watch out if last quarter’s lows break
– Bonds – TLT yellow flag – watch for a potential near term bottom in the US10Y
– DXY – watch for continued strength
– Gold – likely closes out the month as an inside month
– Bitcoin / Ethereum – inside month – picked up some ETH on the reversal
– SHITPERP / DEFIPERP
– Axie Infinity – AXSUSDT/ALICEUSDT/MANAUSDT/SANDUSDT – the crypto gaming market is differentiating itself from the other crypto tokens