Likely Short SPX due to irrational market
Since the March lows the SPX has regained a vast amount of ground, all while corporate earnings have had an awful Q1 in general. The US is experiencing exceptionally high unemployment figures and there are many uncertainties at current. The Wuhan province has seen a resurgence of Covid cases after lifting the lockdown. There has also been a mutation in the virus, which is unfortunately more contagious. My belief behind why the S&P and many other indices have had such quick gains since March is due to fact that the market has been supported by the the FED (and other central banks) purchasing assets, as well as other investors "not wanting to miss out".
Another key point is the fact that that the S&P consists of many tech stocks, which have helped keep the index up. However, I believe this is a bull market soon to end in a longer term bear market. The tech stocks don't really pay dividends, which is really the main reason to invest, which again indicates to me we are experiencing a bubble.
The S&P has tried to break above the 100 period moving average on April 30th and May 11th and 12th. Each time this has occurred it has been rejected. On the daily chart there has been an MACD cross on May 11th. Since then there have been large selling volumes on the daily chart.
This is for educational purposes only and does not count as investment advice.
Another key point is the fact that that the S&P consists of many tech stocks, which have helped keep the index up. However, I believe this is a bull market soon to end in a longer term bear market. The tech stocks don't really pay dividends, which is really the main reason to invest, which again indicates to me we are experiencing a bubble.
The S&P has tried to break above the 100 period moving average on April 30th and May 11th and 12th. Each time this has occurred it has been rejected. On the daily chart there has been an MACD cross on May 11th. Since then there have been large selling volumes on the daily chart.
This is for educational purposes only and does not count as investment advice.
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