The next six weeks could be brutal
First, please read the Disclaimer.
Daily new cases of COVID-19 remain high, warning of further shutdowns as medical facilities are overrun.
Air travel spiked upwards as more than 6 million people traveled home for Thanksgiving.
Health authorities expect the next six weeks to be brutal, with new highs in daily cases and rising pressure on hospitals.
The S&P 500 is totally disconnected, making new highs, with breakout above 3600. Bearish divergence on Twiggs Money Flow (13-week) continues to warn of long-term selling pressure.
Stocks above the 200-Day MA are at 90%. Reversal below 80% would warn of a sharp fall in prices.
Conclusion
We see US stocks as overpriced and maintain our bearish outlook, limiting exposure to growth sectors.
Quote for the Week
"We have not even come close to the peak, and as such, our hospitals are now being overrun."
~ Dr. Michael Osterholm, member of President-elect Joe Biden's Covid advisory team.
Updates for Market Analysis Subscribers
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- S&P 500: Next six weeks could be brutal
- ASX: Cautious on banks
- Commodities and global growth
- Dollar breaks support but so does Gold
- Gold: QE strong and steady
- Gold: MMT and negative Treasury yields
- Gold: Keep your eyes on the prize
- Australian Growth: Performance at 31 October 2020
- International Growth: Performance at 31 October 2020
- ASX Lithium miners
- Epic v. Apple (AAPL)
Disclaimer
Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.
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