Author: Jeffry Turnmire

The current interest rate environment isn’t friendly for refinancing big chunks of money. It’s going to be WAY more expensive, in a time when people want to work from home… leading to less demand. Higher prices and lower demand creates our perfect storm.

Hedge fund net exposure to equities (which means subtracting short exposure from long exposure) is as low as it’s been in three years.

The price moved up through the neck line (light blue line), setting up a price target above the neck line equal to the distance of the move from the head to the neck. 

This confluence of 2 patterns provides a powerful setup.  With an aggressive entry being to buy GILD on a move up above $82.50 (above the recent resistance highs).

Despite the fundamental backdrop driving nudging prices over the long-term, I rely heavily on technical analysis to see what’s moving where now. And this Chart of the Week delivered big.