TLC Weekly Update May 20, 2023


This Friday option expiration stayed in tight range pinned at the SPX 4200. It is clear that bears who tried to time this market top who are overleveraged are now cleansed from the game. They are not wrong per se based on broad measurements of the stock market. However they failed to take into account that Nasdaq 100 and S&P 500 are both market capitalization weighted (in greatly simplified terms). Hence all it takes is a few stock market leaders going higher will power up the indices when 90% or more of the components are going nowhere.

As I pointed out in my newsletter for my premium members, bears need to understand that it is wrong to think the chart is telling them that the indices are going lower. The charts are telling them that the indices are venerable to steep correction should anything really bad happens. As long as such event has not happened, the slow climb can continue just like year 1999.

Another round of opposite views of the markets – a bear and a bull. As usual I do not necessary agree with their point of views. But then it is useful to see why the bulls and the bears do not agree with each other even though they are looking at the same damn set of information.

Here is a very educational video on how the major participants operate in the financial markets really dictates the way these markets move. If Mike Green is correct, the future of financial markets will change drastically in coming months.

Found an interesting channel talking about history from a different perspective. Enjoy!

As usual I have to keep working even for a Canadian long weekend because US holidays do not always line up. This week is one of those.

Have a great weekend all!

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