Week in Review (Jan. 26 – Feb. 1)
Equities – This last week was a total whipsaw market. Ideas such as DOW had correct earnings assumption with beat, but our entry produced a loss due to BA airplane issues which are uncorrelated to adhesives and chemical engineering products. Entries in XLK, SLV, QQQ, and GDX all had correct assumptions in pattern and entry price, but with whipsaw market positions were exited with average of breakeven to avoid further losses after DOW. Entry in SPY turned out to be best trade of the week. We now have downtrend confirmation for overall market on Weekly view, which will allow us to have greater accuracy for entry positions. We are watching confirmation of bearish 10WeekMA price cross on SPY to put the nail in the coffin, which should occur Monday.
Crypto – Bitcoin saw first break of $9500 in months. Bullish EMA cross occurred at week end this week, very bullish sign. Unless we close on Weekly candle below $8350, then we continue up towards targets below.
Looking Forward to (Feb. 2 – Feb. 8)
Equities – Bearish trend should continue as Weekly confirmed end of last week. This means we should have at least 1 week of guaranteed downward movement from current price position on week beginning. We are looking at new entries for QQQ, IYT, SPY, YANG, AAPL, ROKU, and more.
Crypto – Target $10,700 would be 0.618 Fibonacci retracement level. $12k would be closest high after $10,700. For GBTC, the targets this week may become sellout trading positions to attempt position increase for free using cost basis reduction method (sell and rebuy at 50 cent decrease or more for example – effectively earning free shares for next bump up).
1. 5mins 55secs, Shows reaction to market to past pandemics and dates.
7mins 30 secs – shows Coronavirus comparison to SARS response time to resolution. Approximately 6 months to be “resolved” where market reversal occurs.
8mins 39secs – 50-year chart of Epidemics and 1,3,6month returns based on outbreak. Excellent chart. https://www.youtube.com/watch?v=UonaPDcAMuQ
2. 1mins 30secs – CNBC anchor validating that coronavirus, market overbought, and central bank approaching limits of ability to prop up markets could be perfect catalyst for downside
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