We are now entering the stage of 28, Feeling That Bullish Sense?
We are now entering the stage of 1928 this is where people have lost their navigation and lost logic of how markets actually work.
The FREED will lower interest rates to solve debt interest allowing new capital to enter the market once again, why is this a problem?
Its a problem as the people who have been missing the 352 level up until today will re-enter the markets with high leverage to make up for the "recession side line losses"
I See this starting to happen once the 5,000 SPX level is broken and all recession jokers repeating monkey words gets a reality check.
By Level 6,000 this is where the extreme leverage will take place and full FOMO will be in full effect, the FRED by this point will try to re rise interest rates in a panic and limit market leverage (think about banning of short selling before 2009) this will logically fuel more people to take more loans and find more leverage to go long inflating the market near the 8,000 - 12,000 mark.
Be warned you can play this game with hopes the global central banks print enough capital to bail out the crash that will occur but to be honest? don't count on it. This is where they can let it all fall and push CBDC's and an entire new capitalist system.
Letting go of stock returns at the peak of 1929 will have a similar feeling, I'm sure most won't be able to do it like buying the stock market after a large correction, people trade with emotion this is why it happens.
Even though I'm very bullish on Bitcoin I suspect this is where it will have a 10-20 year sideways bear market like Gold had when this all goes down.
Note
And a translation for people who aren't aware check the FRED debt interest there is only two paths.1. FRED raise rates suppresses this bubble and stops a 1929 style crash (Dollar dies)
2. FRED lowers rates and pays the interest debt and lets a 1929 style crash happen (Dollar survives)
Now if the dollar dies there is nothing left for the stock market, if the dollar survives there is a way to bail out some of the pain.
Its pretty much right in front of you, they're going to let this melt up.
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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.