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Are we going for a ride tomorrow?

The markets made a little nick  to the downside after we had dojis yesterday. The volatility increased today in the second half of trading. The market did not make a dramatic move. I am hoping for the VIX to increase, made a nice Bullish candle today, and turns the markets down. People are now talking about inflation. But there are also voices that the inflation is only temporary, we all know it is not, and it will disappear within the next weeks until the next CPI report comes out. The more stronger factor IMO is the reopening of the US economy and the hiring that goes with it. People will have more money in their pockets and hence will spend more. Retail spending will increase and we will see if supply can keep up. If not it will put more pressure on inflation. Will the FEDs increase interest rates? When? We dont know. But cyclical  (tech stocks) will lose value and money will look for safer havens: Defensive stocks and banks. Defensive stocks like food producers and staples. And also Gold after Bitcoin cannot keep its promise.

If TESLA will lose value the ARK will sink since Tesla is heavily weighted in the ETF.

The Market Heat Map

The VIX ticked up Volatility today

And the Qs might decide tomorrow where to go

We have a few indicators that the ETF might drop. Slopes and Resistance Levels. It dropped a little today but not enough by far.


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