New highs in the US markets last week, but what about this one? In this week’s video, I cover some of the stronger bearish moves taking over the market. Sector rotation gets most of the credit for new highs in the S&P 500, but there is little to justify it continuing.
My take on next week is more bearish moves with an increase in volatility.
I’d love to see the speculators push Oil higher, but it’s still a speculators game.
UGAZ (Natural Gas) has hit a Keltner Top after spiking 2x it’s daily ATR. This is an extreme move higher so I’m going to by $10k worth of DGAZ (Inverse Natural Gas) @ $4.27 with an expected sell for tomorrow.
US markets are still in sector rotation mode. These new highs in the Dow and S&P 500 are highly speculative with no fundamentals to back them up. US volatility is again near historical 10-year lows while international markets are getting hit.
Looking at the global markets, it feels more like a robbing Peter to pay Paul scenario. Interest rate increases are on the horizon so how long will cheap money continue to prop up the US markets? Who is going to blink first?
Are there trade setups for the week? Perhaps, but this is the week to start paying attention, it could be the precedence for the week to come.