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Table of Contents
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Today we have a message from:
Missed out on Ring and Nest? Don’t let RYSE slip away!
Ring 一 Acquired by Amazon for $1.2B
Nest 一 Acquired by Google for $3.2B
If you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one.
RYSE is a tech firm poised to dominate the Smart Shades market (growing at an astonishing 55% annually), and their public offering of shares priced at just $1.50 has opened.
They have generated over 20X growth in share price for early shareholders, with significant upside remaining as they just launched in over 100 Best Buy stores.
Retail distribution was the main driver behind the acquisitions of both Ring and Nest, and their exclusive deal with Best Buy puts them in pole position to dominate this burgeoning industry.
Market Summary
What is the market signature today? A “gap and crap” in SPX (and others) to well below 50D MA! This will make many traders bearish.
However, my tea leaves suggest that the market can bounce soon and from not much lower levels, provided there is no additional major geopolitical event. The rally/bounce could last 10-15 days. It may be unpleasant for late shorts. I elaborated on alternatives in the premium content.
Some indexes may still attempt a new high. Shorter cycles allow for that, while MT cycles have already turned down, and LT cycles are in the process of doing so. But, with or without a new high, everything points down in the intermediate term.
Repeat from before:
Remember that I mentioned several times in the last 2-3 months that in an expected topping formation one should raise cash by selling the rips. Those who followed this strategy did well and got the prices above the present levels. This game scenario is still appropriate.
The short-term analysis is becoming more in line with the intermediate—and long-term analyses, which suggests a reversal is due. The lightning could strike unexpectedly around the tops.
My longer-term expectations do not change. I will repeat from the weekend report: “Despite the market's resiliency and FOMO, I expect a correction in the next 2-4 months, initially.
Market data as of close on 15 Apr. 2024.
Gold Cycles
Gold and silver had a remarkable reversal on Friday. The gold futures cycle composite suggests a correction or consolidation of gains into October. A long-term cycle perspective is presented in the premium content.
Technical Analysis
SMCI update – one of the “craziest stocks lately has two possibilities: the blue triangle (bullish) and the broken neckline of the orange Head & Shoulders (H&S) pattern (bearish). Although it is a close call, my preference is for the orange pattern to play out, with a significant downside potential.
Sentiment- Risky Assets
Investors are heavily in risky assets, similar to the previous market peaks (the chart's source was lost). Does not bode well for investors.
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Cycle Analysis of Major Indexes
NDX reached the 40D cycle target we posted yesterday. . .
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