All Forecasts On This Page Utilize The Forecasting Methodology Taught At:

About Bo Yoder
Beginning his full-time trading career in 1997, Bo is a professional trader, two-time author, and consultant to the financial industry on matters of market analysis, and edge optimization.

A partner at Market Forecasting Academy, Bo has been a featured speaker internationally for decades and has developed a reputation for trading live in front of an audience as a real-time example of what it is like to trade for a living.

In addition to his two books for McGraw-Hill, Mastering Futures Trading, and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as, Technical Analysis of Stocks & Commodities, Trader’s, Active Trader Magazine and Forbes to name a few.

Bo currently spends his time with his wife and son in the great state of Maine where he trades, researches behavioral economics, and is a passionate sailboat racer.

He has an MBA from The Boston University School of Management.
Market Forecast For The Week Of 3/20/21
Written By Bo Yoder, Published 3/20/2021
The S&P 500 (ETF:SPY)

It’s a management week for me here as The S&P 500 (analyzed here using the ETF:SPY) turned lower off the resistance levels near the highs just as forecast in last week’s newsletter.

I hope you were able to get your shorts on as the engulfing gap open occurred on Thursday’s session to start the correction.

My forecast for the S&P can be best understood by looking at the yellow arrows on the attached chart. I would expect to see the selling pressure expand next week, then a bounce which ends up fizzling out into a lower high.

This price action would paint a “head and shoulders” reversal pattern on the daily chart. This is a very well understood reversal pattern and would attract a lot of profit taking activity which should turn the market sharply lower.

If past historical tendencies hold true, the selling would be fast and violent until the market had shed 5% or so…

This seems to be the trigger level for the “Plunge Protection Team” to come in and start running the market back up to the highs as seen recently on 1/21 and 3/21. 

Coca-Cola (NYSE:KO) is turning out to be my favorite trade opportunity in quite a while. While I gave this as a confident bearish opportunity last week…This week that opinion was confirmed by a “double setup”.

As you can see in the attached chart, both the daily AND weekly charts are showing concentric head and shoulder reversal patterns! While a head and shoulders is a worthy entry trigger in any circumstances…To have two setting up in different time frames at the same time really increases the odds for this to be a fun and profitable short as the odds “stack”.

This stock should get kicked in the shins by any weakness in the indexes next week and continues to offer a relative weakness play that I’m quite excited about.

Gold, (analyzed here using the ETF:GLD) is teasing me here as it smoothly rallies. While I am bullish on gold, there remains some undigested bearish energy that I believe will cause one more retest before the true bottom is in.

That’s where the odds are, but there is always a chance that this WAS the V bottom and that it will run away without me.

That’s perfectly ok with me. I have plenty of opportunity flow out there, and only my ego will take a hit if I miss this bottom in gold.

FOMO or the “Fear Of Missing Out” is a killer for traders and investors. It provokes many emotional entries that are sloppy and pay off poorly. I have been the “greater fool” too many times in my early years to get suckered by this kind of low quality bottoming process. 

I can stand by and wait for “my shot” to clear up and give me the kind of odds for success that I demand. Watching and waiting is STILL the posture for me at this time.
Regeneron Pharmaceuticals (REGN)

The stock of Regeneron Pharmaceuticals (NASDAQ: REGN) rallied nicely this week. After falling just short of the $500 per share area, it began it’s first real correction. 

I would not be surprised if this correction “shakes the tree” and takes price back down below the $470 area. This should whipsaw out the weak players and free the stock up to begin building a higher low which should launch another period of rally.
Copyright © 2021 - Bo Yoder