I have not seen the QQQ this over sold in a while.
I would not be shocked if shorts cover and push the Qs up. The FED is driving this. For that reason it won't stop until they are done.
They(the FED) still have to get stuff off their books when rates are done, and no one is really sure how that is going to look when they start.
I will be watching the action in the currency market as rates move to see if any sign of dollar strength holds commodity prices down or flat. With Biden as president, I think there is only one way to resolve the supply/demand problem and that is by causing a recession which is the point of demand destruction we are hearing people talk about. For that reason, I believe the markets still have huge risk to the down side. These actions are deflationary, so I am doing everything with some form of caution as this mess unfolds.
As I have posted before, I am a fan of oil right now. At some point oil will go back to being weak, but until then, I am watching charts and buying. Oil at these prices is going to really boost earnings for OIL companies and that is why i am hanging out there right now. It is indeed the perfect storm for commodities.
That said,
WTIC (light sweet crude) is making a little pattern here as it consolidates. Hopefully this next move is going to break upward and start a new leg pulling the oil stocks with it.
Many ways to play oil.
I like oil trust as one way. They pay monthly and follow oil. The more oil is, the bigger the dividend.
SJT has a beautiful 9% yield right now. With a healthy chart to boot. SBR isn't so bad either.
If the dollar was going to see weakness, I would suggest cand. oil trust because you get the advantage of currency exchange when they pay that beautiful dividend.
https://finance.yahoo.com/quote/SJT?p=SJT&.tsrc=fin-srch
One of my favorite oil stocks is CVX.
CVX has been hanging on the 50MA, and looks to be trying to bounce upward..
I have been buying on down days. I own more shares than I should right now.
GOOG:
Google is looking very oversold. If I were going to try my luck with anything, I would maybe try GOOG here, but I would likely not stay in it for very long. Buy the dips and sell the rips.I am not buying GOOG, but I am watching it.
I am waiting to see if the market gives me a chance for a new short position on the Qs.
LNG is also holding the 50MA. It looks to be just hanging out here after getting the double tap at the 150 area. Fingers crossed he goes for it again and passes…
Let's talk TSLA and electric cars.
TSLA is oversold right now like everything in the market. TSLA has a good competitive advantage right now against their competition and they are doing a great job hanging onto it. With all the companies trying to get into this market right now, the future of TSLA is going to get interesting. One thing is for sure, I believe people getting into this market are still very far from where TSLA is, so I don't think they have much to worry about in the near term. I also believe higher gas prices will push people to buy an electric car, and the house hold name is TSLA. I am on the fence about buying this one.
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