U.S Markets May Push Higher A Bit Before Falling

Looking at the chart of the Nasdaq composite, you can see that several key indicators show that the move higher or sideways is not over. The RSI is still increasing and both the MACD and Slow Stochastics have not crossed yet…in short the Fed and Wall Street is going to keep this going a little longer (manipulation).

The wall street “Sell in May, Go away” mantra does not hold true this year and now we are in the month of June. The question is how long are they going to manipulate this market before it crashes or corrects. My guess and it is only a guess is that it may be around mid July. Don’t hold me to it, as market timing is one of the hardest things to do and one can only guess or gestimate :)

In light of the above observations, I am opening a very small position (2 ETF contracts) of the Horizons BetaPro NASDAQ-100 Bear Plus ETF on the Toronto Stock Market (TSX). For you Americans, you can short the QQQ or find another instrument on the U.S markets to short. My thought is that the Nasdaq may push a bit higher from here…up to 3500 or maybe even 3550, however the market sure looks like it is running out of steam and some caution for longs should be taken here.

Like my guess says I anticipate the market will nose dive starting early or mid July until the end of August. For the Nasdaq from 3500 roughly down to between 3000-3100. This will mean a 11-15% decline…quite significant then at those levels I will cash out my Horizons BetaPro NASDAQ-100 Bear Plus ETF. After that happens, I think the U.S Federal Reserve will crank up the money printing press and print more U.S dollars and give it to wall street and they will inject it into the stock market to push it up back to the highest levels we’ve seen this year. Yap, the market is that manipulated by the government and wall street in collusion with each other.

Please read my “Disclaimer” as I can be totally wrong, do not take any risk based on reading this article. Read the “Disclaimer”

written by: Das Brain

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