Thu, 18 June 2020
Danielle comments on the Stock Market. Fed is buying corporate bonds. Nothing new, every time there’s a decline they promise new action and it magically goes up. So much corruption. Robinhood is selling trading data to algo traders who then front run them. Hedge funds are the most invested since the crash. At the same time money market fund assets are at an all time high. People have a lot less income to spend. In Canada there’s 20 percent less household income. People are spending less and saving more. It's just a matter of time before the reality catches up to the stock market. |
Thu, 18 June 2020
1. These markets are like the old weeble wobbles toys, they wobble but they don't fall down. That is what seems to be what is going on right now. This is still an options expiration week and traders should still remain on guard. Last week's high volume decline has not been exceeded yet. So far markets are holding up well. The reality is we’re above all the moving averages and that indicates that markets are heading higher. 2. May Retail Sales +17.7% vs +9.0%, May Retail Sales Ex-Auto +12.4% vs +5.2%. Means more bullish sentiment. You can question the numbers, but they are definitely a mood enhancer. These are better than expected numbers, but the market was already sharply higher in the overnight futures market. Some say it is due to an infrastructure bill by President Trump. I really do not believe that was the reason. The reason is likely that the central bank is now buying corporate bonds which was announced yesterday afternoon. 3. Gold and silver recouped most of their losses yesterday, which is very bullish. Longer consolidation period ahead. Watch the pattern. 4. Trading off your high is bullish depending upon where you’re coming from. Volume is always important. |
