Equities bounced, with the SPX pushing to 4172, and settling +43pts (1.1%) to 4159. Meanwhile, WTIC settled -$1.41 (2.2%) to $61.94.
sp’weekly1b
WTIC daily
Summary
sp: Despite a very significant rebound from the Wed’ low of 4061, the SPX is still net lower for the week. Whilst OPEX will bode for considerable chop, the s/t cyclical setup into the weekend leans to the bears, and I’d look for net Friday declines. Weekly momentum continues to weaken, and should turn negative next week. 4K appears realistic next Wed/Thurs’.
wtic: a third day lower, printing $61.67, with a notable settlement under the 50dma. S/t vulnerable to psy’60/59s. More broadly, the 75/76s still look realistic as early as late June.
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Looking ahead
Friday will see PMI manu’, PMI serv’, existing home sales.
Earnings: DE, FL
Event: It will be OPEX, so expect considerable chop, on higher vol’. Considering daily and weekly momentum, the setup into the weekend, and stretching into next week, leans to the bears.
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PF chart of the day
Computer has an adjusted price target of the $501s.
Tesla, monthly
With six trading days left of the month (May 31st is a holiday), Tesla is net lower by a rather massive -17.3% in the $586s. I’d note the key 10MA $602s. A May settlement <600 should be seen as a ‘problem’ to the bulls.
As ever, its just one stock, but its clearly an important one to the market. As monthly momentum continues to weaken, summer 2021 looks increasingly difficult. I’d imagine Burry of Scion would agree.
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Final note…
I’ve not looked at Litecoin in a while (I’ve other priorities!)…
So it printed the $147s yesterday, having imploded from the $413s. I’m supposed to consider this as a currency or valid means of payment?
I see it as inherently worthless, pushed around by the big money gamblers, the speculative lunatics living with their parents, and various tweets… not least from Musk.
Ohh, and for those interested, the king of crypto…
Bitcoin is back in the 40000s, having recovered from the 29s. A run to 50K looks realistic, but more broadly… 20k looks probable, if not for a few months.
I sleep easy just meddling in stocks… no options, and absolutely… no margin.
Goodnight from London