US TECH: Would you like butter on that toast?
When US Tech stocks were heading in a northbound trend, nobody had a problem in 'predicting' anything.
Now we see the emergence of a death cross, and folk are struggling to believe what's happening. At each major bearish rebellion in the bear trend, there are shouts of hope.
Even slight increases in unemployment are now a cause for hope. Because hopesters 'know' that poor employment is a sign that inflation is being beaten. And if inflation is being beaten then the FED will back off with QT and interest rate hikes. Well of course it doesn't quite work like that - there is a more complicated relationship between employment and inflation.
So volatility in all markets drawing strength from US TECH has been up lately.
Two key things to watch:
1 - Amber daily ATR.
2 - 200 EMA in relation to daily ATR.
The markets have a lot of work to do before there is a clear reversal for the north. Most of them would have to break above a daily ATR and remain above for considerable time. No sign of that as yet.
Now we see the emergence of a death cross, and folk are struggling to believe what's happening. At each major bearish rebellion in the bear trend, there are shouts of hope.
Even slight increases in unemployment are now a cause for hope. Because hopesters 'know' that poor employment is a sign that inflation is being beaten. And if inflation is being beaten then the FED will back off with QT and interest rate hikes. Well of course it doesn't quite work like that - there is a more complicated relationship between employment and inflation.
So volatility in all markets drawing strength from US TECH has been up lately.
Two key things to watch:
1 - Amber daily ATR.
2 - 200 EMA in relation to daily ATR.
The markets have a lot of work to do before there is a clear reversal for the north. Most of them would have to break above a daily ATR and remain above for considerable time. No sign of that as yet.
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
