Short term/long term plans
DJT is one of my canaries (in the coal-mine). I also look at DJI and SPX similarly, they give you a good idea about what's happening at the market in general. The idea is to notice the steep pink/magenta arrows (6 of them within 2 months! should be enough to learn from it) and conclude, that the blue arrows are the 'real' ones that would represent a trend instead of short lived run ups that will never last and continue permanently. I hope it's not confusing: just compare the angles of the arrows (how steep the blue vs.pink). One of them works, the other doesn't. More over, looking at the longer run (1 year ahead) this recent blue arrow could be a correction of a bear market even (like a big bear flag) after all, we are in the middle of a great recession, an "unprecedented" economic situation that has no pair since 1929, right? At least that's what I heard. So accordingly, it's more likely that this phase is a correction, and we are still in a bear market. So, maybe the V shape recovery will work now, for the 7th time? If we leave out all the news and all the economic background, the bankruptcies, the high unemployment numbers and it's consequences nationwide and only analyze the chart from a mathematical perspective (like common sense betting on odds), then yes, it's possible. A 1 in a 7 chance, so less then 15% to win, more than 85% to loose. Still wanna bet on the quick upside or some kind of a pull back, down correction, leg down or even a bigger collapse/downturn should follow any time soon? Let me know in the comments, more likely UP or DOWN?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.