This is why you NEED to understand Supply & Demand.
Forget your fancy indicators all you need to become a profitable trader is price and volume. $QQQ $SPY
Theory: Fed pivot is going to be 50bps in December and continue to slow down more into the spring, then UE will rise and inflation will decrease. Bottom will come in early 2024 or late 2023.
Stocks just made another massive green to red daily reversal.
Meanwhile, the $VIX is down another 1%.
This isn’t panic selling, this isn’t even orderly selling.
The real selling has not begun.
LARRY FINK CEO OF BLACKROCK WHICH IS THE WORLDS LARGEST ASSET MANAGER WITH OVER 10 TRILLION IN ASSETS SOLD ANOTHER 8% OF HIS OWN STOCK LAST WEEK. THIS IS HIS BIGGEST STOCK SALE AFTER COVID , HIS LAST BIGGEST STOCK SALE WAS RIGHT BEFORE THE COVID CRASH. $BLK
Current situation:
1. $SPX down like the bear market has continued
2. $VIX down like nothing is happening
3. Bonds down like we are back in risk-on mode
4. WTI crude above $120 like inflation is at 10%
5. Gold flat like inflation is gone
Literally nothing is adding up here.
$INDP 36.91% short / CEO 13D 9% buying Oct 15-Nov 5 filed Nov 17 / Float is 3 mil / September 30, 2021 cash equivalents of approximately $41.9 million compared to $1.6 million December 31, 2020
Broke: Omicron will damage consumer confidence and stocks will drop with earnings
Woke: Omicron is bullish because it means we will have new stimulus and the Fed will take longer to taper
*FOMC WILL SPEED PACE OF MONTHLY BOND BUYING TAPER
*FOMC: WILL TRIM MONTHLY TREASURY PURCHASE RATE BY $20 BILLION
*FOMC WILL TRIM MONTHLY MBS PURCHASE RATE BY $10 BILLION