What Uncertainty Does Tomorrow Hold?
What Uncertainty Does Tomorrow Hold?June 21, 2021
What a difference a weekend makes.
Last week ended with a Fed-induced sell-off in the overall market while this week began with an overall rebound to the upside as energy and travel sectors led the charge.
Five days of losses last week may not be the end of selling, despite today’s boomerang momentum. Summer temperatures will continue heating up, and this market could fry trading accounts for those not prepared for the heat of a topsy-turvy mid-year run.
While the major indexes popped higher, some trader favorites – like cryptocurrency – suffered significant setbacks. Bitcoin lost considerable value during the Monday session. Other market markers, like the U.S. Treasury yields, were mixed and not a sign of optimism ahead.
Still, key tickers like those of the FAANG – Facebook, Amazon, Apple, Netflix, and Alphabet (formerly known as Google) – showed strength to start the week.
This market environment can be confusing so we remain nimble in our trading plan while leaning bullish and remaining prepared for more selling. Key internal signals we’re watching are the moving averages and shorter time frames.
With markets worldwide stumbling forward on unsteady, uncertain stilts, we’re staying in our lanes and waiting for tomorrow to set our path forward.
We Saw: Market rebounding after five days to the downside –
- Energy, travel picking up gains
- Bitcoin continuing as target of governments
- Retailers heating up competition into summer months
We’re Watching: Instability, uncertainty in markets worldwide –
- Nimble and cautious, but not hiding cash in a mattress
- Is cryptocurrency stumbling or crumbling?
- Buying winners on down days while leaning bullish