Blog

QQQ OUTPERFORMANCE IS A LEADING INDICATOR

Outlook: Broad equity indices have shown strength in the face of bearish media, economists, and the like. Though I am still not calling for new all-time highs, the playbook remains the same. I anticipate new local highs as equities march on with higher duration risk (i.e. crypto) switching from leaders to laggards and will eventually play catch up. 

QQQ: May meet sell pressure at this resistance zone but will march higher as tech leads. 

SPY: Breaking out absolutely on a weekly close and eyeing 431 longer term.

DXY: The bounce off the retest of 101 doesn’t imply a bullish trend (sideways action at best).

Yields: 2s 10s and 30s are holding the 50W MA but bounces aren’t sticking. A breakdown along the curve appears inevitable.

Commodity Complex: None of the majors look exceptional, though natural gas is catching a bid and as stated several weeks ago I believe this is one that has to most room to mean revert.

Gold: Holding steady and not triple topping. I like an eventual breakout, particularly when conditions warrant monetary intervention.  

BTC/ETH: Bullish price action continues to be beaten back but the refusal to breakdown implies a firming base that will lead to a leg up and runs at 37000 and 2500, respectively.

“Nothing on this page constitutes professional and/or financial advice. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site before making any decisions based on such information or other content.”

NOVEMBER 3, 2024 OBSERVATIONS

As discussed in prior weeks, broad equity price action will remain choppy around the top until the election results are clear. The worst-case scenario would...