Wednesday, November 11, 2020

First Moderna, Then Pfizer

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(CNBC 07/27/2020) Top executives at the biotech company Moderna have sold millions of dollars in stock this year as the company’s share price has skyrocketed on hopes it will produce a viable Covid-19 vaccine. Moderna CEO Stephane Bancel joins “Squawk Box” to address the concerns some investors have about the stock sales.

(CNBC 11/11/2020) Pfizer CEO sold $5.6 million of stock as company announced vaccine data that sent shares soaring.

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Well, surprise, surprise. How come the articles don't read something like, "Dang. You know I sold my stock five days before this announcement and so I missed making a killing. Just call me a 'bad luck' CEO". Yeah, right. And remember, these sales are outside of their healthy executive salaries and bonuses. Personally, I have never believed in stock-based executive compensation for exactly this reason. While it may be legal as the law is currently defined, it certainly smacks of greed or even gluttony. And, what about the worker? What about their compensation?


So then you have the people who "bought on market open" on the vaccine news two days ago, over the upper daily Bollinger Band no-less, and who were likely greeted with some of these sales, making the long-tailed candle. Today was a second day the market spent trying to recover. The bias of prices remains up, yet the daily slow stochastic remains in over-bought territory. Assuming there were 'five-waves-up' from the October low, we are looking to see what depth of retracement wave occurs from the high. So far, on the hourly chart, it is nearly - but not quite - 38.2%. 

The wave counting is difficult and choppy at the moment. Intraday, we showed "three-waves-up" and then a downward overlap of the first wave up. But, there is nothing conclusive in such a pattern. It could form a double zigzag, a triple zigzag, or a diagonal. More waves are needed.

Have a good start to the evening.

TraderJoe

38 comments:

  1. Hourly - update to prior (if interested).

    https://funkyimg.com/i/38ztP.png

    ReplyDelete
  2. Hard to say, just yet, but this portion might be a triangle or a smaller portion of a larger triangle.

    https://invst.ly/st7n-

    TJ

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  3. What abt a and then now triangle for b then c up this all for B. As B is too low compared to the top

    ReplyDelete
    Replies
    1. I think less likely due to degree violation but I don't really know b/c I can't see your idea. You should try linking to an Investing.com or TradingView chart, so your ideas can be better understood by me and all readers.

      TJ

      Delete
  4. ES 30-min; now sitting on lower trend line of potential triangle.

    https://invst.ly/st9-j

    TJ

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  5. Now down through the low of the smaller triangle; larger triangle or impulse now possible.

    https://invst.ly/staws

    TJ

    ReplyDelete
    Replies
    1. ..now down through wave ((B)) of smaller triangle; larger triangle or impulse possible.

      https://invst.ly/stb2d

      TJ

      Delete
  6. Just fyi; 3,533 = 62% retrace of up leg to yesterday's high; 3,521 = 78.6%

    ReplyDelete
    Replies
    1. ..just fyi - ES 30-min; 2nd consecutive close below lower intraday Bollinger Band.

      Delete
  7. I see three waves in SPY (pardon if my labeling of degree is incorrect):
    From 218.26 Low (3/23) to 323.41 High (6/8) {A}
    From 323.41 High (6/8) to 298.93 Low (6/29) {B}
    From 298.93 Low (6/29) to 364.38 High (11/9) {C}
    The .618 Fibonacci extension of the A wave from the B wave low equals 363.91 which is 0.47 from Monday's high.

    ReplyDelete
    Replies
    1. so; the {C} wave does not look or count correctly. Can you show what you are thinking in a linked chart? You get the same 0.618 Fibo if you use the 15 June low and the 03 Sep high, which is where my posts show (W); then followed by three waves down to (X).

      TJ

      Delete
  8. (From CNBC)

    Federal Reserve Chairman Jerome Powell said Thursday he worries about women, children and business owners who face long-term consequences from the coronavirus pandemic.

    Asked to name his chief concerns as the world tries to recover from the Covid-19 crisis, Powell said it’s “the risk that there is some longer-run damage to the productive capacity of the economy and to people’s lives who have been disrupted by the pandemic.”

    He spoke during a European Central Bank panel discussion with ECB President Christine Lagarde and Bank of England Governor Andrew Bailey.

    TJ

    ReplyDelete
  9. fyi only - ES 30-min, close back inside the lower intraday Bollinger Band after three consecutive closes below the lower band. This resets the number of consecutive closes to 0. Also, note the 18-period SMA on the intraday has a bear cross below the 100-period SMA. This might provide resistance on the way up.

    https://invst.ly/stc0o

    TJ

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  10. Update to prior 4hr chart -

    https://funkyimg.com/i/38AcQ.png

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  11. Update to last night's hrly -

    https://funkyimg.com/i/38AeR.png

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  12. Hi TJ,
    Would you update us on your medium term count please? Looks like X may have been shallower than anticipated. You were anticipating a new high, we got it. Is your overall count (solid in my opinion) from "Trillions" still possible? Avi and JobJas are suggesting 4000+ and 3770. Thanks!

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  13. ES 30-min @ 3,513 tagged the 90% downward level in a wave that is difficult to count, or failed. A return to the high in a Flat, is not impossible. But there are downward counts too. We need to ask why so many waves are stopping at 90%.

    https://invst.ly/stdg9

    TJ

    ReplyDelete
  14. Sideways (for now) -

    https://funkyimg.com/i/38B19.png

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  15. How about this on SPX?

    https://invst.ly/stspt

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  16. Another 90% retrace taken from Nov 11 high and Nov 12 low.

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  17. Anyone see 5 waves up on hrly futures?

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  18. NQ futures have a very clear impulse imho, maybe an A wave. So there should be another C, questions is if black ((b)) is finished or not

    https://invst.ly/sttfa

    ReplyDelete
  19. Just fyi - ES 30-min - another 90% upward wave. The upward wave is capable of completing a flat if it wants. There is room. May have to recycle lower to pick up some energy though.

    https://invst.ly/sttfy

    TJ

    ReplyDelete
    Replies
    1. ES 30-min; by hitting ES 3,577.00 the bare 'minimum' Flat was has occurred.

      https://invst.ly/sttzd

      TJ

      Delete
    2. ES 5-min..suggested to watch out for diagonal or truncation in this last wave.

      https://invst.ly/stu6b

      TJ

      Delete
    3. ES 5-min; marginal new high, and downward overlap.

      https://invst.ly/stuar

      TJ

      Delete
  20. We have negated the neg. HD, and have closed at the pos. HD level currently.
    (reference hrly chart).

    ReplyDelete
    Replies
    1. If we cant move on beyond the pos. HD level (more than marginally), this could be a point for a change of direction.

      Delete
  21. ES 5-min below ES 3,572.50 a diagonal can no longer form.

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  22. Current observations on hourly -

    https://funkyimg.com/i/38BBj.png

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  23. ES 5-min ..possible minor truncation top. Watch this new line for breach and back-test.

    https://invst.ly/stuj0

    TJ

    ReplyDelete
    Replies
    1. ..a fifth wave busted higher, and can now only be counted as a running fourth wave, plus a fifth wave (imho).

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    2. ..it's a good trick, the running fourth and I'll have to remember it. I do, but it's easy to forget.

      https://invst.ly/stuu4

      TJ

      Delete