TSLA - Yellen Declares Victory - Stock Market Cheers Key Week For Bitcoin | Benzinga
To gain an edge, this is what you need to know today.
Premature Victory
Please click here for a chart of SPDR S&P 500 ETF Trust (NYSEARCA:SPY) which represents the benchmark stock market index S&P 500 (SPX).
Note the following:
- The chart shows that the stock market is consolidating below the resistance zone but above the mini support zone.
- RSI on the chart shows that the stock market is oversold in the very short term. Oversold markets tend to bounce.
- Consider not paying attention to Dow Jones Industrial Average (DJIA) as represented by ETF SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA: DIA) and instead focusing on S&P 500. The reason is that Boeing Co (NYSE: BA), a stock in DJIA, is down about 7% as of this writing in the premarket. BA stock is down due to an Alaska Air Group, Inc. (NYSE: ALK) plane 737 Max-9 experiencing a blowout incident with a door plug.
- Treasury Secretary Yellen has declared victory. She tweeted, "The American people, workers, and businesses have helped put us on a path to a soft landing. @POTUS’s economic agenda is giving them the tools they need to grow the economy, including historic investments in infrastructure, clean technology, and semiconductors.”
- In The Arora Report analysis, Yellen is premature. The reason is the 40 year history of recessions that we have deeply studied. It is important for investors to understand how recession occurs and how every single time, a vast majority of investors are blindsided and lose money. To help those wanting next level knowledge, we are preparing a podcast. The podcast will be available in the Arora Ambassador Club.
- There are two important conferences that will impact several stocks and may impact the overall stock market.
- Consumer Electronics Show is taking place in Las Vegas. This time, the focus is on artificial intelligence.
- JPMorgan Chase & Co (NYSE: JPM) Healthcare Conference is taking place in San ...