Sector Review, Crypto, Dollar, & SPX
By Bennett Tindle January 22nd, 2020
As Bennett noted, we’re heading into some very key earnings in the market and will soon be presented with the data that could substantiate this period of expansion and ultimately support our projected melt higher. Far too many people have cited the 40%+ advance we’ve made off the 2018 lows, while failing to take into consideration the larger picture. Yes, we’ve been on an incredible run since the December 2018 lows, but are only +16% from the January 2018 highs! Remember, the 30-year average annualized return of the S&P 500 is 12%. So while we are still tracking potential bearish, risk-off scenarios from a macro standpoint, we are all but ready to abandon our count which suggests the higher degree 4th wave correction is still unfolding, and focus exclusively on our bullish count which anchors the 4th wave completion at the December 2018 low. We’re watching patiently and expect the next 3-4 weeks to establish sentiment for the next 3-4 months and are ready to aggressively tackle additional upside potential in the markets.
The world of Crypto Currency can often be confusing, but it doesn’t have to be! The level of euphoria it brought to the world of investing is second to none and was even compared to Tulip Mania at one point. Investors and traders alike learned exactly what “FOMO” really felt like. That is, the fear of missing out. We now find ourselves once again in a period of expansion in the Crypto space and feel now is the time to pull up our sleeves and get to work.
Thanks for tuning in and we’ll see you next week!