The Dow Jones Industrial Average is back, way off the lows of 18000. The Nasdaq has recouped most of its loses since the coronavirus outbreak. The S&P 500 is trading at its October levels. 14.7% unemployment; those jobs will be back as soon as the economy reopens. “This is one crazy ride we’ve been on. I think it’s safe to put my money back into the market.” THINK AGAIN!!!

I don’t know where all this elation came from, but now is not a good time to get back into the market. The bad news is coming and coming soon. As earnings season is upon us and companies are announcing not so horrific quarters, let us keep in mind that the coronavirus started hitting the U.S. economy in full effect at the end of March. This is a FAKE RALLY if i’ve ever seen one. Keep your eyes open as this rally is set to end in mid-May. The pullback due to ascend upon us will come at the hands of future forecasts from companies.

If my charting is correct, the Dow Jones Industrial Average will pullback to the 21000 range. The Nasdaq composite will sit near 8200. The S&P 500 will drop to 2500. I see this happening all before June 8th. My Portfolio has rode this wave before. I’m buying puts against the Indices in order to make money on the way down. When navigating these wild swings in the market, trade with caution.

Talk to you soon,

Jeff Jefferson

Investment Mob