The cheques are in the mail – or are they?

Have we finally reached the end of the line for stocks?  Did last week’s $2 Trillion Biden Bung mark the extreme of bullish sentiment and mark a Buy the Rumour, Sell the News event?

Here is the Dow

Do study this chart – it has all of the ingredients for a likely major reversal.  In particular, I like the large mom div going into last week’s ‘overshoot’ that should be confirmed if we see further weakness next week.

VIP Traders Club members are trading short.

With the announcement of Biden’s plans to drop $2 Trillion of helicopter money, that may or may not actually occur – and the ambition may be scaled back as it passes through into law.

We are seeing weakness in the previous leaders, Apple and Tesla

We have a potential Double Top in Apple with a strong mom div

and Tesla has broken my major lower tramline in Round 1 to the bears.  A good break of support at $800 would be Round 2 also to the bears.

Pro Shares members are short

The Dollar has made a major bottom

Finally, I have my dollar low a week or so ago

Should now stage a sharp bounce off my lower tramline.

VIP Traders Club members are long the dollar

Here is the Chinese Yuan (CNH)

The scene is set for the Chinese authorities to do what it takes to weaken their currency.  I expect big things from this campaign

Pot Stocks are smokin’

I had a bullish piece on marijuana shares in last week;s COTW for Interactive Investor and featured Tilray

We are long Tilray for Pro Shares.

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