Markets traded lower as Fed Chair Jerome Powell provided uncertainty regarding the projected length of an economic recovery and stated additional government aid could be “worth it.” Similarly-discouraging comments from Dr. Fauci on Tuesday and the latest batch of underwhelming economic reports are also pressuring markets, with all three major U.S. indices down over 1.5% for the day. Retail Sales report for April is due on Friday while today’s Producer-Price Index release showed a 1.3% drop last month. Next week, several key retail earnings will release including Walmart, Home Depot, and Lowes. It is our opinion that investors should continue considering hedging portfolios into the rallies. Based on our models, the SPY will trade between $270-$295 level in the next 2-3 weeks. Several sectors have already broken through their recent overhead resistance levels, eliminating the potential for the market to retest $260 SPY level, in our opinion. We will be a buyer into any short term corrections but will continue monitoring the VIX. The market can overshoot support and resistance levels when VIX is trading near $30 level. In the short term, we still believe the market is overbought; long-term investors can consider buying equities with dollar-cost averaging in mind. Market Commentary readers are always encouraged to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
We're at an interesting spot. For the bears, the 5ema is crossing below the 13ema in SPX (not so in QQQ yet). For the bulls, SPX doesn't stay below 2800. Just watching to see which way this goes.
right now market trying to hurt both sides of the trade, but overall it feels like we may be trending downwards.
SRNE pump on news of a covid cure. So much buying to keep it above $7 right now. Looking for an after hours offering to RIP buyers today
retail sales falling by the most ever on record last month? no problemo mr market! jpow crank that shit up to 11! Spoiler: Click to Show! not to be outdone, jimmy cramer you show 'em how its done Spoiler: Click to Show! k, i'm done lol
The malls here are allowed to open starting from today in Hawaii, but I am probably not going anytime soon As for the market, as long as it seems like the FED will continue to be supportive, I guess the market will be ok
GDX hitting multi year highs here If the central banks continue to print money and the economy remains rather weak, I can see gold going higher from here
^ this 1,000% as you had mentioned at the start of the month, the sell in may period has actually been pretty bullish for the market over the past couple of years. i know you've been on this since day #1 as well @stock1234 but definitely thinking you are right on cue when you say that as long as QE-infinity exists, then who cares about the shit econ reports. that all gets thrown out the window. seems like good 'ole BTFD is alive and well
