DragonTrader is still on vacations until end of August, but market commentaries still come for another two weeks. Totally free as usual!
S&P500 has crossed blue down sloping reaction line since last post. The money is still flowing in, so I would not be surprised movement still continues for a while. Should it reverse during my August vacations, please alert so everyone can profit from a little short!
As the Fed is printing lots of money, it flows in the stock market but also in Gold and possibly some cryptocurrencies as well. Diversification? Possibly. Or you need to see the other way round: as you print more money, the value of money decreases, so price of Gold goes up! Volume of available gold does not change a lot year over year, and countries wealth (GDP) is going down due to little virus, so gold is safe harbor! See, if dollar has been disconnected from Gold more that 45 years ago, people still think in gold terms!
It is even better for Silver, but you need to ask a drunk economist reason for this strong uptrend!
I was moderately bearish on Bitcoin but the graph starts to show something different. First, the money is flowing in as shown by accumulation distribution indicator and there is now a hidden divergence with WAD. Makes me think that an up move is possible, the post-halving rally everyone has been expected for a while! Tip: look at Ethereum, might be even more interesting!
That’s it. Until next time, trade safely!
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