One of the perks of being a subscriber of The Entry Points premium content is that Trader Scott sends our members comments every morning about market directions, movements and stocks we are watching for set ups. We release these comments in an edited form afterwards from time to time to allow our visitors a little peak into our premarket information.
So for my actual concerns (for an intermediate-term selloff, which is not at all my concern yet) about the stock market, as opposed to those who have been wrong since March 2009 – the junk bond market and it’s lower highs since March 9, 2008, which I’ve talked about numerous times, is way more concerning to me than all of the total useless nonsense about overvaluation, P/Es, taxes, North Korea, Trump, etc. It is the one market which could allow for a “wonderful” selloff in the general stock market. Of course to me, but very few share this view, it would be an amazing buying opportunity in the multi-decade stock bull. And it’s this support area around 36.20 to watch for the initial bounce and the potential for the failing secondary rally.
But it is this chart which is by far the “scariest” chart in the world. I did a post over a year ago about how I believe the US 30 year bond represents, in graphical terms, the current up-to-date state of the confidence level in CBs. And that level itself is in its last hurrah (automatic rally), along with bonds. I laid out in this post that belief of a secondary rally in TLT, with, for me, the next shorting opportunity above 127.50 into the gap at 128.60. Bonds are in the biggest distribution area I’ve ever seen. You’d have to go back to bonds in the 1930s-40s to see one as big. And that led to a bear market which didn’t bottom until September 1981. I expect this won’t be any different.
The other thing is the Middle East. I’m doing a post about some of this stuff, but for now, Zero Hedge is doing a very good job of chronicling the rising turmoil in Saudi Arabia. As talked about recently in this post, crude oil is very bullish over the next several years. Stocks, commodities, and PMs will generally all rally together. There will be more comments about this soon, but no I do not believe the stagnation in gold has anything to do with BTC. The commentary about this will disappear into the next gold rally. Just focus on each market separately. And here is a BTC chart. I laid out important technical situations, and how they interact. Go thru it and work on it. I’ll talk about it later. Here’s a crypto stock. I’m still long NUGT, and looking to sell into a spike. We’re closing in on the next intermediate rally in gold.
Stocks – if you were following OSTK it had another excellent buy area, and is up on “lousy” earnings. I’m still long and believe it’s had huge accumulation. Also long HALO. Watching CMLS, ROKU, KBSF all daytraders.
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