On May 18, at 8:08 AM Pacifc time, I posted a chart for POWW and implied it could be considered. (Not should be, just could be.) The price was $1.61. This morning, three market days later, at 8:14 AM Pacific, POWW is trading at $1.815 (according to BarChart). That’s a 12.7% gain.
For sure, it’d be fun to take a victory lap for that call. But that would be dishonest. The set up for an entry looked promising. But I have no idea why the trade is working in terms of its underlying fundamentals. I just know POWW is being bid, as are most of the other trades I’ve put on a recent days despite the bruhaha over the supposed “debt ceiling crisis”, which will be settled at the last minute, but which ignores the larger problems facing the US and the coming correction and crash.
Note: According to a new [Associated Press poll](https://www.breitbart.com/politics/2023/05/21/ap-pcts oll-most-americans-only-want-debt-ceiling-raised-deficit-conditions/), only 19% of the public supports Joe Biden’s extreme position of raising the debt limit with no conditions, while 63% of the public supports McCarthy’s position of only raising the debt limit if spending reductions are included. Sixteen percent of the public doesn’t believe we should raise the debt limit at all.
And, Yes, the previous paragraph is “political”. But “political” impacts stock prices, which impacts the financial well-being of individal households, whether they invest in stocks or not. If the debt ceiling is raised or not will still mean higher inflation, because of the increasing move toward de-dollarization in the non-aligned world, which includes the majority of the world’s populations and the majority of its economic activities.
OK, back to charting.
That’s a clean, informative chart, right? It’s one of five templates that I alternate between.
The upper panel benchmarks the plotted security against the US broad market using RSP as the base symbol. The mid panel uses some short-term triangular MAs and a speeded up version of the SAR indicator. The lower panel is a cleaned up version of StochRSI.
…Later. POWW is rolling over in sysmpathy with the broad market. (The purple line is SPX.) But I’d say to sit tight.
