Stocks are up slightly this morning, most likely due to President Trump’s rapid recovery from COVID-19. Remember, futures first plunged on Thursday night/ Friday morning when he announced he and the first lady had tested positive for COVID-19.
Despite all of the excitement, the market remains in a kind of “no man’s land” between resistance (red line) and support (green line). Until we break one of these lines with conviction, stocks are in a chop fest.
Stepping back from the day to day, the S&P 500 looks to be forming an inverse Head and Shoulders pattern. If we break above that neckline, the upside target is not all-time highs. By the look of things, we’ll know if this will be the case by the end of the week.
Why would this happen?
Because the Fed and other major central banks have gone “all in” on their efforts to create a stock market bubble.
Forget politics, forget social issues, forget all of that stuff. The one thing that matters to central banks is keeping the markets elevated.
At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.
We had the Tech Bubble in the ’90s.
The Housing Bubble in the mid-00s.
And now the Everything Bubble in 2020.
On that note, we’re putting together an Executive Summary on how to play this move.
It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
Chief Market Strategist
Phoenix Capital Research