S&P 500: Winter Is Here But Spring Is Coming
Updated
Dear friends.
2022 was a tough year for the market with the Fed putting a hold to the tremendous inflow of capital on the markets and reversing its damage after being confronted by record inflation. The Fed did a good job by acting fast and decisive (something other central banks did not or could not do) it resulted in a USD bull market and a bear market for risk on assets.
Now, we are in a different ball game, the DXY has topped, CPI is coming down and massive lay offs are announced by multiple public traded corporations across the globe. This will cool down the labour market and will further bring down CPI - yet, it will lag, thus expect the jobless claims to rise in 2023. The last big factor is that oil is coming down, due to less demand and the China lockdowns are a helping hand as well - yet, we need to keep a close on how the Russian oil sanctions will influence the oil price (see my latest analysis).
If we look at the SPX, we see we have finished our 5th impulse wave down and set in a bullish divergence on the Money Flow Index (MFI) with a lower low in price and a higher low on the MFI. Furthermore, most of the sellers have jumped ship as seen in the lower volumes traded. Yet again, I want point out that this is a retail chart, institutions don't use OANDA - sorry OANDA. Thus, we see little volume at the lows but I bet the big players and especially market makers and LP's have been sweeping the lows.
The overall sentiment is mega bearish and put to call ratio has hit levels not seen since the early 2000's, it was around 1.40 yesterday. With the end of the year in sight and a huge options expiration, I don't think options dealers plan on bringing their traders a happy Christmas time. Max pain is up and a very bullish sign would be if we can set a higher high by spring. Tradingview will likely explode with bullish by then, but they'll be too late.
For crypto I expect a similar pathway. Bitcoin put options have been popular these last months and max pain for the end of the year is currently sitting around 19-20K. Crypto will need more time to get out of trouble especially with the chaos that is currently unfolding - yet again, I flipped net long since the last drop towards 15K with the majority of my capital invested in fundamentally strong alts. If you like to know which alts, please refer to the links below.
Bring on the FUD and the market will bring the pain.
Have a good weekend.
2022 was a tough year for the market with the Fed putting a hold to the tremendous inflow of capital on the markets and reversing its damage after being confronted by record inflation. The Fed did a good job by acting fast and decisive (something other central banks did not or could not do) it resulted in a USD bull market and a bear market for risk on assets.
Now, we are in a different ball game, the DXY has topped, CPI is coming down and massive lay offs are announced by multiple public traded corporations across the globe. This will cool down the labour market and will further bring down CPI - yet, it will lag, thus expect the jobless claims to rise in 2023. The last big factor is that oil is coming down, due to less demand and the China lockdowns are a helping hand as well - yet, we need to keep a close on how the Russian oil sanctions will influence the oil price (see my latest analysis).
If we look at the SPX, we see we have finished our 5th impulse wave down and set in a bullish divergence on the Money Flow Index (MFI) with a lower low in price and a higher low on the MFI. Furthermore, most of the sellers have jumped ship as seen in the lower volumes traded. Yet again, I want point out that this is a retail chart, institutions don't use OANDA - sorry OANDA. Thus, we see little volume at the lows but I bet the big players and especially market makers and LP's have been sweeping the lows.
The overall sentiment is mega bearish and put to call ratio has hit levels not seen since the early 2000's, it was around 1.40 yesterday. With the end of the year in sight and a huge options expiration, I don't think options dealers plan on bringing their traders a happy Christmas time. Max pain is up and a very bullish sign would be if we can set a higher high by spring. Tradingview will likely explode with bullish by then, but they'll be too late.
For crypto I expect a similar pathway. Bitcoin put options have been popular these last months and max pain for the end of the year is currently sitting around 19-20K. Crypto will need more time to get out of trouble especially with the chaos that is currently unfolding - yet again, I flipped net long since the last drop towards 15K with the majority of my capital invested in fundamentally strong alts. If you like to know which alts, please refer to the links below.
Bring on the FUD and the market will bring the pain.
Have a good weekend.
Note
Y'all should thank god on your bare knees for a TV account like mine.Note
Aaand I thank the non-believers again for my profit. I'm the market makers wordt nightmare, exchanges want to ban me. The house must win and here I am, feeding the poor with standard & poor 500. You're welcome (again).Note
We did it again, congrats to all my friends. Be ready and follow for more because we’re about to go ballistic on crypto again. :)
Important update on Twitter on 10x Club, a weekly newsletter curated by me containing research & analytics on the crypto market & the amazing opportunities during the bear market - Check my Twitter or website link below:
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