DOCU Docusign Weekly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation

DOCU is a pandemic fave. The Wuhan Flu sends many tech stocks such as Docusign and ZM to the moon. The fun began way down at 65 as the China Flu began cutting Americans down. From 65 to 263 is a +300% gain; a 4-bagger. The party is in full swing. The vaccines are all the rage and the pandemic data has improved lately.

The world is awash in liquidity due to 12 years of central banker largess. On top of that is fiscal stimulus with people taking government checks and buying stocks. It is ridiculous and all standard behavior at a significant stock market top. Young traders, such as groups on Reddit, and Robinhood, are entering the market in force afraid of missing the train leaving the station. It is the silly season.

DOCU is topping-out despite the potential for a bad Fall virus wave that may keep Americans indoors and locked-down again. The RSI is trying to flatten, ditto the MACD, so they have to be watched closely, but overall, the price is out over its skis. The rising wedge is a bearish pattern. Stochastics are overbot. The Aroon negative cross has already occurred but oddly, price remains elevated. This is testimony to all the super-hot money in the market now. Everyone is drunk off of Fed and Congressional wine, staggering around, buying any stock with a heartbeat.

The ADX pink box shows the rally as a strong trend higher but this is petering out and the strong upward trend should be officially over in a couple weeks. If you made money in it, take the dough and exit stage right. Short-sellers can give it a whirl going forward with tight stops since it is a pandemic stock. Keystone does not own DOCU long or short and has never played it and probably will not since there are plenty of juicy shorts available in the stock market all over the place.

Keystone is long QID which is the leveraged 2x inverse ETF for the tech sector. QID goes up twice as much when the tech sector (COMPQ or XLK) is dropping BUT it drops twice as much when the tech sector is rising. PSQ is the 1x inverse tech ETF that goes up one for one when the tech sector drops BUT goes down one for one if the tech sector continues rising. If you want to dabble on the short side but it is something new for you, consider PSQ as a ride on the wild side. If tech stocks roll over for the next few weeks as expected, PSQ would rally. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Sunday, 2/21/21: DOCU gains +1% last week to 265.16. Treasury Secretary Yellen is promising big fiscal stimulus spending so stocks recover and rally to end the week. The Queen of the Doves promises money as far as the eye can see.

Note Added Friday Morning, 2/26/21, at 6:13 AM EST: DOCU drops from 275.46 to a low at 222.22, a -19.3% crash, in only five days.