Happy Monday…and fasten your seat belts!

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Last Monday I wrote that ‘a little froth was fun‘. This week we are going to be seeing the other side of froth…with a side of Corona Virus.

Two Monday’s ago I shared a chart of the closed Chinese airports. Turns out that finally matters to traders and investors.

We are going to open deep in a red hole this morning. This whole might be a little different IF the reason is Corona Virus.

Technically and behavior wise, the froth and bullishness was pointing to a change in direction.

I thought this post from MacroCharts was excellent. He was pointing to something truly rare in the markets taking place. The gist:

Yesterday I questioned whether software was eating the world.

Of course Software is eating the world…Bitcoin is still hanging at $10,000 and Microsoft market cap is bigger than the all the energy stocks combined.

But…

Even the best trends take breaks.

To prepare you for the week as always, Ivanhoff and I discuss the momentum and lack thereof on this week’s Momentum Monday. You can watch and or listen here.

It turns out that while we argue about technology, we are doing so over more and more pizza…

The hottest sectors right now are solar ($TAN $SEDG and $ENPH) and battery companies ($PLUG and $BLDP) and Gold. None of it interests me, but traders gonna trade.

Have a great week. I am heading to New York to work.

Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.