This week we have a stock market forecast for the week of 1/30/2022 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)
I'm putting my trading operations back together after a week plus away from my screens due to the good old-fashioned stomach flu that has marched its way through the family one by one, laying us out flat. This was a top 5 bug for sure; I haven't been that debilitated in many years.
The timing of this couldn't have been more perfectly in synch for when the market broke, and after about a 12% correction, the SPY is trying to bounce.
I believe the Fed is losing control, as I have written previously, so for the first time in years, I'm going to fully trust my forecasting tools and forecast that this bounce will produce little more than a lower high. This would confirm the top is in the markets, and a period of bear market operations would begin.
This lower high is also the lowest risk and highest reward entry point for short exposure, so I'll be digging a lot this week to build a candidate list for shorts in the weeks to come.
SPDR Gold Shares (GLD)
Gold continues to ping pong within its range, and this week it turned down and looks like it will test bullish resolve as it drops to challenge the support near $160-$164.
This is a deep strategic position for me, so unless the bottom edge of the red zone near $156 is broken, I'm happy to let it do its thing as I wait for my forecasted uptrend to appear.
iShares Silver Trust (SLV)
Silver is whipsawing in the same manner as Gold. I suspect as the stock market declined, there was a rush to generate cash to meet margin calls which has hurt all the precious metals as well as the crypto space.
We are going to see a solid test of bullish resolve in these markets this week, and how they respond will be critical for my management of these open positions moving forward. If we pass this test, then it should be off to the races.
Goldman Sachs (GS)
The bears came roaring into Goldman over the last two weeks as the lows near $370 were broken.
Having dropped over $30 per share from that level, GS has reached an area of short-term capitulation, and it's time to take profits and look for other opportunities.
Yes, the odds are high that there is more downside coming, but it's an inefficient use of time and capital to hold the wiggle when there are more pressing trades out there.
To Learn How To Accurately and Consistently Forecast Market Prices Just Like Me, Using Market Vulnerability Analysis™, visit Market Forecasting Academy for the Free 5 Day Market Forecasting Primer.
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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.