February 21st: The Argument For A Bull Week

Why would we have another bull week in the stock market? Better question is, was last week a bull week. Answer: Because last week was bearish and we are in a full steam ahead bull economy.

It’s typical in a recovering economy to see very very bullish times, especially now. We have the youngest investors alive trading retail and we have the most money flowing in and out of the stock.market now that pensions are pretty much obsolete. So let me make my case for a bull week.

Evidence 1

Jobless claims chart for the most recent week

You should be able to see a pattern here. I believe that this week the jobless claims will be down quite a bit. I don’t know why the chart looks so predictable but it does. Usually patterns like this are due to natural things happening but I am not an economist nor will I pretend to be one. The coun flip for this one is that Powell is speaking to congress this week about whether or not to keep rates low and supplemental support needed. The two sides of the coin work like this: 1.) he says they need to keep rates low which accelerates Wall Street forward even if Thursday the jobs report is good and 2.) he says we no longer need supplementation and stocks for that day slow a little due to rate increase in the next year or so. Should be fun!

Evidence 2

QQQ Invesco ETF

When trying to find charts to represent the market better than indexes I choose QQQ because it is a collection of some of the best stocks on Wall Street combined into one. There was a natural pull back last week but you can see that its pulling forward here in trajectory on the chart. This chart is showing a clearly defined pattern and I hope it keeps that up.

Evidence 3

Sectors cap off for the last day/week/month

Ahhh, the sectors. Last week technology had an expected pullback. There is nothing wrong with natural pullbacks but the thing I like seeing is consumer defensive still red. That means our general outlook as a public is still bullish. To be fair this is my weakest evidence because consumer defensive is usually bearish during defined recessions or depressions. However, technology follows the same pattern as QQQ mainly because tech leads indexes on profits.

Now, last week had a bad jobless report, RobinHood trials and some nasty earnings reports which makes me believe that tge algos trading pattern this week will be bullish. Sentiment is rather bullish in the media as well due to the negative view GME has put on shorting, especially from hedge funds. Anyways lets look at my favorite pics for this week.

DAY TRADES 02/22/2021: GAYAF, GME, WMT

SWING TRADES 02/22/2021: WMT, GME (SHORT-PENDING PRICE ACTION), QQQ

LONG TRADES 02/22/2021: HEXO, BOXL, QQQ

Lets have a good week guys. Stay tuned tomorrow I want to talk about portfolio management. See ya soon!

-Jessy Padgett

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