Warning: Momentum Stocks Suggest a Face-Ripper is Coming

For certain a BIG MOVE is coming…

by Graham Summers of Gains, Pains, & Capital

Stocks ripped higher yesterday. However, they ended the session near the lows at support (green line in the chart below). The overnight futures session is signaling another rally this morning, but until we take out overhead resistance (red line in the chart below) we’re stuck in no man’s land.

For certain a BIG move is coming. Momentum stocks suggest it will be UP.

Shopify (SHOP), one of the biggest momentum stocks in the market, has broken above one line of resistance already (lower red line in the chart below). It will be testing and possibly breaking a second line of resistance this morning (upper red line in the chart below).

This suggests the next move will be higher.

Tesla (TSLA) another Wall Street momentum darling will likely break above out of its triangle formation (blue lines in the chart below).

This too suggests the next move will be higher.

At the end of the day, it all boils down to what I’ve been saying since 2017… that the Fed and other central banks are trapped in a vicious cycle through which it INTENTIONALLY creates bubbles to deal with each successive bust.

We had the Tech Bubble in the ’90s.

The Housing Bubble in the mid-00s.

And now the Everything Bubble in 2020.

On that note, we’re putting together an Executive Summary on how to play this move.

It will identify which investments will perform best during the Fed’s next bubble, including a unique play that could more than double the performance of the S&P 500.

This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:

phoenixcapitalmarketing.com/TEB.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research