White line - H&S Neckline
Red line - Final target
yellow line - Right shoulder/Bear channel
H&S playing out here. Friday we sold to support . The break of support momentarily was a
MM stop loss hunt , as u can see we closed right back inside here. Being that we closed outside our bollingerbands and are at the bottom end of a bear channel I think Monday we gap up and our next target is is the neck line at 15,988 well we'll either get rejected there or head back to 16,100 bear channel resistance before heading back lower.
Couple of things I notice going into the close was that Tesla and apple regain their trendline. Amazon and MSFT both outside their bbands.
I think our final target will be 14,800. yes I know that is outside of its weekly channel which would be support at 15,100 but I think it will for other purposes I'll mention when the time comes.
Imagine this : The market is a house sitting on a hill, at the top and near that house lies all the trillion dollar companies (Google,Amazon, Apple,Tesla,MSFT). Half way down this hill lies the second tier companies (Roku,Twilio, Paypal,SQ,Zoom,CRM,Oracle,Meli,Visa,AXP). At the bottom lies all the small caps and Meme stocks ( Wish,PLTR,JMIA,WKHS,FUBO,DKNG). Now imagine there is a flood coming and that flood is tapering and Interest rate raise. Big institutions will start fleeing what? those that are closer to ground level but now that flood is halfway up the hill and the second tier stocks are losing 30-50% of their market cap and what happens? Institutions by more of whats left at the top of hill. Early next year the flood will reach the top of the hill and what will the market look like when the biggest companies start losing 30% of their value?
I say that to say this, After this H&S is complete their will be a 1-2month rally, don't waste your capital buying the dip on anything other than the top tier and even then be ready to sell by March-April..
Let's see what happens! I can be right or I can be "John snow"
Red line - Final target
yellow line - Right shoulder/Bear channel
H&S playing out here. Friday we sold to support . The break of support momentarily was a
MM stop loss hunt , as u can see we closed right back inside here. Being that we closed outside our bollingerbands and are at the bottom end of a bear channel I think Monday we gap up and our next target is is the neck line at 15,988 well we'll either get rejected there or head back to 16,100 bear channel resistance before heading back lower.
Couple of things I notice going into the close was that Tesla and apple regain their trendline. Amazon and MSFT both outside their bbands.
I think our final target will be 14,800. yes I know that is outside of its weekly channel which would be support at 15,100 but I think it will for other purposes I'll mention when the time comes.
Imagine this : The market is a house sitting on a hill, at the top and near that house lies all the trillion dollar companies (Google,Amazon, Apple,Tesla,MSFT). Half way down this hill lies the second tier companies (Roku,Twilio, Paypal,SQ,Zoom,CRM,Oracle,Meli,Visa,AXP). At the bottom lies all the small caps and Meme stocks ( Wish,PLTR,JMIA,WKHS,FUBO,DKNG). Now imagine there is a flood coming and that flood is tapering and Interest rate raise. Big institutions will start fleeing what? those that are closer to ground level but now that flood is halfway up the hill and the second tier stocks are losing 30-50% of their market cap and what happens? Institutions by more of whats left at the top of hill. Early next year the flood will reach the top of the hill and what will the market look like when the biggest companies start losing 30% of their value?
I say that to say this, After this H&S is complete their will be a 1-2month rally, don't waste your capital buying the dip on anything other than the top tier and even then be ready to sell by March-April..
Let's see what happens! I can be right or I can be "John snow"
