Posted October 15, 2020
By Scott Stewart
M for Murder, V for Victory
Jobless Claims Jump, Market Falls
Almost 900,000 jobless claims were filed last week, overshooting the projections by a long shot.We obviously still have problems in the economy due to the coronavirus pandemic, and the ripple effect its had.And now, after all the pushing the market has been doing up and up over the past several weeksWere seeing a correction at market open.The topic for today isDouble Tops
In analyzing the markets, we see double bottoms and double tops.Investopedia gives us a simple definition for this:A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.In this case, the asset is the S&P 500.Looking at chart patterns, the saying goes, V is for Victory, M is for Murder.If you remember, Ive been talking about the V pattern we were seeing in the marketplace. This was a bullish indicator that would imply the market was correcting to the upside after a downward trajectory.Now, the chart pattern is taking an M shapeYou can see where Ive lined up the crosshairs to show that double top.We are seeing this same pattern across all the major markets: the S&P, the Dow, the NASDAQ, even the small caps Russell 2000.Are we in for a downward move in the marketplace?It certainly looks that way today.The question is, will we break down below the 50day MA once again?Looking at the Monsters of Tech
We of course want to check out the Monsters of Tech, the stocks that lead the NASDAQ and the overall marketplace.They are all down today.But, that doesnt mean we cant trade them!In the Rude Awakening Pro, we set up a high POP, bearish trade on Amazon.com Inc (AMZN), for implied returns of 3% in just one week, or 160% annualized returns.Its a trade that stands to make money whether the stock falls further, middles out, or even goes up somewhat.We did this using options.If you want to learn more about our Pro level trades, you will be able to sign up for our Rude Awakening Pro service very soonBut for now, thats it for today!Have a great rest of your trading day, folks.Well talk again tomorrowRegards,Scott StewartEditor, Rude Awakening
“The Dumbest Thing I’ve Ever Read on the Internet”
Posted April 25, 2024
By Sean Ring
The mailbag earns praise and ridicule. Let's have some fun reading what the Remnant thinks.
King: What Rising Gold Means to You
Posted April 24, 2024
By Byron King
The MSM jumped on the bandwagon. The 2024 Gold Rush has begun.
The Kickboxing Economist
Posted April 23, 2024
By Sean Ring
If you care about your...country, read Ludwig von Mises and the six lessons of the Austrian Economic School.
The Price of Empire
Posted April 22, 2024
By Sean Ring
Mike Johnson’s package passed; now Americans are on the hook for another $95 billion.
The Origin Story
Posted April 18, 2024
By Sean Ring
Far from an organized plan, my renunciation was a shock to even me.
Yet Another Sanctions Backfire
Posted April 18, 2024
By Sean Ring
Russia keeps building in the face of failing Western sanctions