SHOPIFY and Momentum Stocks MIGHT Fall 20-25% before May

Many of those who have been following me have noticed my consistency and accuracy regarding Gold and Silver. Currently, we have seen Gold break-out and this will continue; Silver is only a week or less behind with a parabolic move on its way.

The question now must be asked: with Gold and Silver inevitably gearing up for a big move to the upside, can equities, particularly momentum stocks really continue to go up? In contingency with falling US yields and a rising DXY in my opinion the answer is no and we may-be gearing up for a sell-off with some bounces to the upside along the way, in March and at-least some of April.

I do not believe this would mark the end of the bull-run, but likely provide a 7-10% correction for the broader market, and roughly a 20-25% decline for momentum stocks such as Shopify, AMD, Nvidia, and many others that have led the entire market forward. For many momentum stocks, Gann angles are getting far too steep.

Interestingly enough, many of these momentum stocks sold off on Friday at double to triple the average volume, and 2-3x the amplification relative to the broader market.

Watch carefully over the course of the next few weeks and see if this idea pans-out. Moreover, we must see how equities react to the coronavirus, as well as, if equities can actually continue to surge higher (or bounce back).

Should we be near a correction, look for a buying opportunity in late April or early May. From here I see healthy market gains throughout the Spring and Summer before a likely fall near the US election, and then potentially an end to the bull market sometime in Q1 or Q2 of 2021 which would likely be the timing of the SPX hitting near 4000.

- zSplit