We suspect that over the next few weeks and months, mainstream media is going to get swept up in the ‘all about Bitcoin’ narrative. More importantly, Thanksgiving sets off a number of seasonal patterns as well. We need to combine several of them for one trade.
Last week, after a strong start to the week, we saw the moves fade and the rest of the week resolve in directionless action on the major indices. Locally our banks popped well, although started pulling back a little in the second half of the week. For the coming week, we see opportunities in Gold miners for high risk-reward long positions at the start of the week. With some luck we’ll see decent pullbacks in the banks for good long setups in the second half of the week.
Over the last few weeks we’ve shared some thoughts about the fundamental picture we are seeing, and thus fired off a few warnings about the sustainability of the tech rally. This week we’ll keep things simple and only consider the charts, without having the fundamentals interfere with our thinking.
The ‘tech call option whale’ that’s been doing a lot of this buying has now been identified as SoftBank. We also had news that Tesla will not be included in the S&P500 index. Perhaps the Nasdaq melt-up might have finally come to an end?
There is a lot that happened this past weekend! Brexit actually took place… the World Health Organisation (WHO) declared the Coronavirus a Public Health Emergency of International Concern. Our expectation is that we will see heavy losses in Commodities and Commodities stocks, specially industrial metals.
A little late due to some administrative changes, although we decided that we should publish some of the trades we are watching this week anyway.