In last week’s video, I stated –
“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.”
This past week this scenario pretty much played out to the tee as markets continued their grind higher at the beginning of the week only to pull back sharply mid-week and then see buyers step back in in the back half of the week to take the SPY and QQQ back to all-time highs.
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.
All of this is potentially coming to a head this week as we get the all-important CPI print on Tuesday along with the start of earnings season.
Remember the trend is your friend until the end so the smart thing to do is to continue to follow the current trend but look for potentially narrative-changing catalysts. :eyes:
The crypto markets continue to consolidate as Bitcoin and Ethereum are firmly inside month and while there are some pockets of strength and lots of market-moving headlines the pure price action analysis is telling you that we are likely stuck in a period of consolidation until we can break out of last month’s ranges.
Here are some of the ideas in this week’s video:
0:00 – Intro – the all-important CPI # and earnings season
3:10 – VXX/VIX futures analysis
9:25 – Analysis of SPY/QQQ – all-time highs – yellow flag – continued Weekly momo up move and Bollinger band walks
18:40 – DIA/IWM analysis –
22:30 – TSX analysis
24:40 – EEM – weakest of the equity markets
27:15- Bonds – TLT yellow flag – watch for a potential near term bottom in the US10Y
33:35 – DXY – watch for weakness in USD
36:10 – Gold/Gold Miners – continued strength in Gold
35:05 – Bitcoin / Ethereum – firmly inside month
45:35 – Crypto Total market cap / SHITPERP
48:35 – Axie Infinity – AXSUSDT – a review of the trade