This week we have a stock market forecast for the week of 6/6/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!
The S&P 500 (SPY)
The S&P 500, (analyzed here using SPY has done pretty much what I posted in last week’s column.
“I suspect we will see a bullish whipsaw before any retest of the range lows can occur.”
This breakout isn’t well sponsored, so I would expect it to break out and then fail back down to the bearish side. I’m still not seeing the kinds of odds that I want in order to put on much new risk this week. I have one new opportunity to look at, but other than that I am still in a “risk-off” posture.
CSX Corp (CSX)
CSX has hit a powerful area of resistance after a multi-month rally. It has recently rallied into an area that is turning prices down for a new bearish wave of selling. It offers an attractive opportunity in a very so-so market and should be able to drop down to test the green target zone in the weeks to come.
Electronic Arts (EA)
Electronic Arts (EA) was on strict probation last week and failed to prove that it should be kept alive. The scratch saved over $2 in additional risk.
Gold (analyzed here using GLD) has been a shining star in a sea of waffling and sideways chop.
As I stated in last week’s forecast, the correction is starting, and normally I’d hold on. However, the big gap down that we saw this week really “took the starch” out of the bulls and should produce a deeper and more violent correction.
It’s time to take profits and start watching this market for another entry opportunity in the future.
The Eurodollar vs The US Dollar
Another week... yet ANOTHER “tail” formed on the weekly chart of the EUR/USD currency pair.
While it is still possible this market will drop down to the profit target, the odds have dropped radically. The “risk-off” theme continues as this trade is scratched and we wait for better places to deploy capital.
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About Bo Yoder:
Beginning his full-time trading career in 1997, Bo is a professional trader, partner at Market Forecasting Academy, developer of The Myalolipsis Technique, two-time author, and consultant to the financial industry on matters of market analysis and edge optimization.
Bo has been a featured speaker internationally for decades and has developed a reputation for trading live in front of an audience as a real-time example of what it is like to trade for a living.
In addition to his two books for McGraw-Hill, Mastering Futures Trading and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as TheStreet.com, Technical Analysis of Stocks & Commodities, Trader’s, Active Trader Magazine and Forbes to name a few.
Bo currently spends his time with his wife and son in the great state of Maine, where he trades, researches behavioral economics & neuropsychology, and is an enthusiastic sailboat racer.
He has an MBA from The Boston University School of Management.
Disclosure: This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation for their opinion.