Page menu

Monday, June 6, 2022

6/6/22 - Market Wrap-up & A Look Ahead

Market has been trading pretty-much as I predicted last week. We did however catch another monster rally in Dow tech stocks, on Thursday! 

$FDN was up over 5%, and the 3X bull $WEBL up 16%!

$ARK also tweeted out to paying members @3XTradersLive - on June 2nd. 

I prefer not to reveal those charts 

"$ARK ($TARK) also continues to trend up - probably into a little upturned triangle pattern. $26 by the end of next week imho"



While it didn't hit $26 is was up big on Thursday, and I was right about the triangle pattern.


As far as the rest of the market, it has continued to hold up in a range for the past week.

Friday we finally saw a little pullback, but as soon as it reached 4100 on the $SPX, the $VIX was hammered, in order to rig the weekly options market.


Speaking of rigged options markets, energy managed to close at or near recent highs, again on Friday.

I think as long as investors continue to hide out in energy stocks, then tech isn't going to lead the market higher.

The commodities, so called, "super-cycle" trade, also needs to collapse in a heap, but you can see how long it can take to build a topping pattern. This can take months in some cases


Of course, there's not easy way to short commodities, but the bear funds for material stocks, and oil, and energy should do pretty well.

I mentioned $ERY, in an update last week, but there's also an oil drillers bear, and that sector looks toppy af!


I suppose BRENT Crude could retest the 128 level again, but I don't see it breaking out above the 2008 high. How can inflation be so bad, if Oil is still trading below 2008 levels?

I think the whole inflation story is overblown, and

Last week Bloomberg was reporting that oil was up 4 months in a row, and while that's true, they could have just as easily reported that it hasn't traded to a new high in 4 months.

$WTI - trades into a bear flag



The energy bulls claim Oil is going to continue to hold north of $100, so I'd expect buyers to come in there, and catch a falling knife.

I believe the crash we saw in oil 4 months ago, was only the first leg down, and I think we could see oil back around $50, before the end of the year.


Take care, and good luck

AA 






sss

No comments:

Post a Comment