Walmart Stock Chart Sets Up False Breakout Trade
Walmart WMT False Breakout Trade 6.6-19
Walmart stock charts sets up perfectly to sucker breakout players into a bad idea…
With the recent bullish momentum in the stock market, WMT managed to reach the $104 level. A Breakout that has failed several times the past 6 months.
Short-term exuberance, a large green candlestick and a close above the breakout level will trap traders not paying attention. The SPY ETF has rallied strongly with bullish gaps the previous 2 days giving the impression of strength. But a closer look it's actually short-covering.
Fast moves higher, after bearish selling give us short-covering. Traders exiting short sale positions. Generally these moves pause and move lower to the previous swing low.
If stock prices pause, we have a chance to see new buying (as opposed to short covering).
Good traders must know both scenarios. You have your A+ setup, and then your “what-ifs.” Market analysis aside, I'm looking for WMT to be lower in 5 days based on all of these reasons.
Look for a hard fall if today is an inside day in the stock.
The US Economy's Dirty Big Secret
There is a dirty little secret in economics today: the United States has benefited – and continues to benefit – from the global slump.
Last year, the US economy grew by 2.9%, while the eurozone expanded by just 1.8%, giving President Donald Trump even more confidence in his confrontational style.
But relatively strong US growth amid sluggishness elsewhere is not what economics textbooks would predict. Whatever happened to the tightly integrated world economy that the International Monetary Fund and the World Bank have been advocating – and more recently extolling – since World War II?
zerohedge.com/us-economys-dirty-big-secret
Trump threatens China with tariffs on further $300 billion of goods
SHANNON, Ireland/BEIJING (Reuters) – U.S. President Donald Trump threatened to hit China with tariffs on “at least” another $300 billion worth of Chinese goods but said he thought both China and Mexico wanted to make deals in their trade disputes with the United States.
Tensions between the world’s two largest economies have risen sharply since talks aimed at ending a festering trade war broke down in early May.
While Trump said on Thursday that talks with China were ongoing, no face-to-face meetings have been held since May 10 […]
