Weekly Perspectives: More Volatility Ahead 📈📉

Weekly Market Outlook For July 27 – 31, 2020 – More Volatility Ahead
July 25, 2020
Weekly Market Outlook For August 3 – 7, 2020 – More Highs
August 1, 2020
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Weekly Perspectives:  More Volatility Ahead 📈📉

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Hi traders, 

Here is your weekly newsletter — perspectives on trading and financial markets.

Click here for the previous edition.

 

More Volatility Ahead 

This past week we got the volatility that we were looking for and this coming week is shaping up to be no different.

We’re coming into the final trading week of July which is significant not only because we have a lot of economic data and corporate earnings this week but also because it will set the stage for how we close off the month of July.

In this week’s video I discuss:

  • Whether or not we have a major reversal setting up and what I will be looking for to signal if that happens
  • The anatomy of a breakdown/breakout
  • The breakout in the long bond and the continued move in Gold
  • The setup in cryptos and what I’m looking at
  • The importance of getting back into the trade if you get stopped out
  • Understanding the Outside – Inside pattern and the psychology behind that price action pattern


Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For July 27 – 31, 2020.

 

The Need To Be Right 

We are currently trading in an interesting period where the markets seemed to be disconnected from the real economy and I see a lot of traders struggling with the need to be right (and the need to know why) vs. trading what is actually on the chart. 

In this timely piece by Dr. Menaker, he shares 3 important self-directed questions that can get at the heart of your need to be right and to gain some control over it.  

  1. Is my need to be right stronger than my desire to make money? 
  2. Why is my need to be right stronger than my desire to make money? Are there unmet ego needs?
  3. Am I paying more attention to what I want versus what I see?

 

Tesla Knocks on S&P 500’s Door

The rise of Tesla’s stock price has been nothing but spectacular.  

Tesla has rallied 818% since it made its 2019 closing low of $178.97 just over a year ago on June 3rd.  It is also up nearly 300% YTD, so if it was in the S&P 500, it would be the top-performing stock in the index YTD.

So how does Tesla compare to some of the dotcom era’s mega winners?

Interestingly it’s actually in the same ballpark –


 Source:  Bespoke Investment Group

  

Wall Street’s Crypto Cold War 

Even with the recent surge in crypto prices, cryptos remain in large part mostly traded by retail traders. 

That said cryptos have been steadily been making more leeway into Wall Street as penned in this article from Institutional Investor.  

One of the more out-spoken Bitcoin enthusiasts from Wall Street’s elite is Paul Tudor Jones.

“Truth in advertising,” he said in a recent investor letter. “I am not a hard-money nor a crypto nut. I am not a millennial investing in cryptocurrency, which is very popular in that generation, but a baby boomer who wants to capture the opportunity set while protecting my capital in ever-changing environments. One way to do that is to make sure I am invested in the instruments that respond first to the massive increases in global money. And given that bitcoin has positive returns over the most recent time frames, a deeper dive into it was warranted.”

 

Stay strong, and happy trading!

Houston

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Weekly Perspectives: More Volatility Ahead 📈📉

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