Global stock markets are mostly higher this morning following Tuesday’s rally on Wall Street. In the U.S., however, the Dow Jones opened lower while the S&P 500 moved higher.
I’m still concerned that momentum levels for the S&P 500 and Nasdaq 100 are above the 90th percentile, which means markets are grossly overbought. And if President Biden’s $1.9 trillion stimulus plan isn’t passed, we could remain at these levels for quite awhile.
That means we need to be cautious…
At the same time, large-cap stocks like Humana are breaking below their 200-day moving averages and making predictable short-term trades to the downside.
In today’s video, I’ll explain why I’d be cautious initiating a long position on stocks that are not pulling back right now… if the Dow Jones could trade above its 50-day moving average for the second day in a row… and why we’re seeing a lot of market vulnerability right now.
P.S. Just in case you haven’t noticed yet, the markets can be heavily influenced by the richest people in the world.
They can pour millions of dollars into seemingly random stocks and send the share prices to the moon.
Take Peloton for example… A lot of people wanted nothing to do with this stock when it dropped to $18… But then George Soros came flying in and bought 2.7 million shares of it and the stock shot up to almost $140 per share!
These billionaire Kingmakers can completely change the outlook of a stock…
And those that manage to get in these stocks before the billionaires drive the price up could cash in BIG.
Luckily, stock market expert Adam Sarhan seems to have figured out how to make that happen.
Click here to learn how you can create a kingdom with your profits in 2021.