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Link for this issue: https://tradingdiary.incrediblecharts.com/2020-11-28-markets.php
 

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.

USA: Daily COVID-19 cases

Air travel spiked upwards as more than 6 million people traveled home for Thanksgiving.

Dakotas

Health authorities expect the next six weeks to be brutal, with new highs in daily cases and rising pressure on hospitals.

Los Angeles: Stay-at-Home

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.

S&P 500

Stocks above the 200-Day MA are at 90%. Reversal below 80% would warn of a sharp fall in prices.

S&P 500 Stocks Above 200-Day MA

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.

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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Advice in the Material is provided for the general information of readers and viewers (collectively referred to as "Readers") and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no Reader should act on the basis of any information in the Material without properly considering its applicability to their financial circumstances. If not properly qualified to do this for themselves, Readers should seek professional advice.

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