VIX

Oh, the madness that is 2021! Never in my life did I think I would see a bunch of internet nerds take down hedge funds and brokerages... just for the lols. But here we are; Robinhood is basically dead in the water, Melvin Capital has offered a job to u/DeepFuckingValue (who made $46 million on GameStop since October 2020), Wall Street losses on GameStop and other heavily shorted stocks are tracking well over $70 billion and there is no sign at all that the Redditors have any intention of stopping. It boggles the mind!

This week I am keeping things a little less 'opinion' and focusing just on technical trade ideas. Well, trying to keep opinion out of it at least and just following what the chart says. So let's get into it.

The U.S. market is closed on Monday for Presidents' Day, which means that our market will likely be rather quiet at the start of the week. Overall though, the bullish trend is strong and has been for some time. I rang some alarm bells last week, although it seems that I was wrong. This doesn't mean that we should all rush out and put on a thousand new long positions. Patience, caution, always.

As equity valuations reach closer and closer to the stratosphere, trading Gold has become a little more tricky than what it was when all the stimulus was just announced. In fact, Gold has been fading ever since August last year. Now, after all is said and done, we're finally starting to see Bond Yields start to rise and the Dollar start to strengthen. These two forces might be enough to catch some the bulls trading Gold offside. Things are looking fairly bleak for the shiny yellow metal.

Once again the U.S. Fed has tossed the kitchen sink across the room in a bid to keep the music going. We're still to see how markets react, but from what we've seen so far, once the stimulus cheques are in the mail, stonks only go up!