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Stocks At Bear Zone But Crypto Bullish
Anyway, lets dive into the charts and setups for the week. I'm seeing that the S&P has finally into a bear zone and almost completed the TD 9 Sell Setup on the daily chart. This just means that should start to see the market correct a little bit after a very nice rally. I'm pretty hedged out with weekly puts for the S&P.
Look to tactically play the short side into this area. I am however slightly skeptical of any short ideas working due to the nature of the setup in Crypto. We shorted some ARKK names on Friday to hedge out risk but if this crypto break out is going to reflect broad market risk-on, I'm having a hard time seeing the short idea on ARKK working due to the nature of how correlated those products are.
On the ARKK chart, we can clearly see a roll over that is starting to transpire with lagging indicators starting to pick up on the underlying data. The on balance volume did not give any bullish push to the recent surge higher. We also have to remember that the bonds could start to bounce in the medium term which might be bullish for the space as well.
If the bonds will start to bounce, I can't imagine that would be great for the financial factor. Goldman looks like a clean trend short lower setup with a very tight stop on last week's highs.
NMR showing the same exact setup here
For a long trade, I'm stalking PBH here with a very tight stop. Healthcare names overall look to be doing quite well and want to ride that alpha train to valhalla.
Also looking at FR - a REIT that I have done well on trading from the short-side. I'm seeing the stock right into the anchored VWAPs from the highs coupled with the fact that we are back into the trend level in the short term. Good risk reward to be short in my view.
Marijuana stocks had a massive bid last week and I'm seeing calls for a major bottom. Given the nature of how this has trended lower, I would not be expecting a massive V reversal. In fact, I would be looking for a trade on the short side here as long as its below 12. Just seems like its much easier to lose buying this versus selling. Trend model agrees.
Thats about it for now. If you liked the charts, you can check out my new software that I am using. I actually like it much better over my Bloomberg terminal, its called TrendSpider and you can get a trial here -> https://bit.ly/3JGbIKO