Dow 40000 and Why Everything Will Go UpDow will eventually hit 40000, that's a conservative 50% rise from current level of 28000. That is not crazy, that is within norm.
Remember Dow Quadrapled in 4 years from 1925 to 1929. Dow Tripled in few years leading to 1987. and the did another quadrupling for the next 10 years into 2000/
So, going quadrupling after 20 years from the year 2000 is pathetic.
Plus, money printing, QE, negative yield bonds and etc, will fuel everything to go up in value versus US dollar.
What is the value of US dollar? Maybe Dow 40000 or 100000 is not enough to even preserve wealth.
Regardless, I am not here to discuss that and I don't want to waste my time on any arguments.
The point is, everything looks super bullish from simple Technical perspective. Any traders that are pure technical, should be 100% bullish on the stock market.
And if US stock markets (Dow, S&P 500, Nasdaq) did well, expect some RECOVERY and REBOUND from global equities.
US stock markets will remain OUTPERFORMING the general global equities because capital is flowing INTO US, not OUT.
And the BEST sector remains the TECHNOLOGY sector, especially those that are part of Industrial 4.0.
Bullish Tech, bullish Industrial 4.0, this might be the last time to get wealthy enough to be able to buy lands and live off grids before the next big crash in global economy and chaos worldwide.
I am not Bullish on everything forever, the crash will happen, but not now. Eventually everything will crash.
Crypto and Bitcoin will recover during this period of time, the risk reward ratio is still favourable for Crypto to become trillion dollar asset industry and for capital to FLOW into this market. But I diversify my portfolios and I don't put all my baskets into one asset.
Life a minimalist life, be prepared to live off grid, be prepared for the chaos and revolution to come. Stock market going up doesn't mean everything is right.
DOW
Dow Jones Trading 2 HR Chart Oktober EducationHere i show you a simple trading stragety
on a 2 HR Chart.
So only a few trades in a month.
Trading Long if you have a high high
anmd trading short if you have a lower low.
10 Trades
+ 330
+ 60
+ 400
- 270
- 45
+ 30
+ 45
- 110
- 190
+ 250
6 Gewinner + 1115 Points
4 Verlierer - - 715 Points
SUMMARY 400 POINTS
with only 4 times a day to watch the chart
It would be even better in a 1 HR chart
with more trades and better Results
Good trades.
if you want to support my work, please like them
My analyes here are all NOT a request to buy or sell
seomething. Allways do you own research.
Renkotrade
DOW JONES/SPX500 - EU woke up with a strong downwards moveHello traders
I. Wisdom of the day
I heard a lot of trading saying that trading INDICES (CFD) is only interesting when the USA wakes up.
Nothing could be further from the truth...
It's not common knowledge that the DOW JONES/SPX500 often give an interesting move when the Europeans wake up.
This interesting trade often happens between 6:30 and 8:30 am (UTC+2)
II. Why a 1-minute chart?
This is not a scalping trading method, it's intraday and based on smoothed indicators for entering in a strong trend only.
The Algorithm Builder method won't give more than 3/5 trades per day even.
Those are the most secure trades possible because:
- the system waits for a strong confirmation and will avoid the fakeouts
- the 1 minute allows to enter very early. This point is crucial.
I made it so that to enter early but with a minimum of security.
III. Signals of the day
3.1 Morning trade
No trade is easy. Especially when I just woke up, signal given in front of supports but... you know the drill... What's a decent way to reduce one's risk?
Answer : Wait for a pullback.
I usually wait for a pullback near the EMA(20) - symbolized by the red circles on my screenshot.
Pullbacks and invalidations are keys to reduce one's risk - which put more weight on the opportunity side of the opportunity/risk scale
3.2 Afternoon trades
The first signal was in front of resistances and against a leading trend. A leading trend in a bigger timeframe also increases the trade security => less risk
IV. Last words
Do you think that looking first to decrease the risk and then capturing the opportunity is the way to go?
All the best,
Dave
Apple, Warren Buffett, Why Rich People Are Long Term InvestorsShort sellers continue to get rekt by shorting a "Bull Market".
Warren Buffett has shown to us time and time again the only way to be rich and be super wealthy is Long Term Investing.
Short term traders are not in the top list and will never be, because market timing and trying to short a never ending bull market is a pointless things to do.
Eventually market will top and reach the peak of the bubble, the easiest thing to do is to hold cash and put money in something else.
Short selling are only for losers.
Is the S&P500 at the end of a 100+ year CYCLE?The S&P500 market has started the end of a 100+ year 5 wave cycle, if this is correct we are now at almost the top of a 5 wave cycle which can end in the very near future. If this is true we are at the start of one of the biggest, if not the biggest market crash in the history of the S&P500. A correction of 5 wave cycle is usually 61.8% of the entire 5 waves, if this is correct we could see S&P500 prices of $1,100 levels. We are talking about $20 trillion wiped out. We could be going into a DEPRESSION!!!!
BLACK MONDAY 1987 – COULD IT HAPPEN AGAIN?USA30, Daily
On the third Monday of October 1987, Black Monday, as it became known in the financial markets, happened. October 19 1987 saw the largest single-day fall in global stock markets, and the Dow Jones Industrial Average (USA30) also fell a record 23% in a single trading day. In Europe the UK FTSE100 (UK100) fell on the Monday too but worse was yet to come as the weeks wore on.
So what happened in 1987?
Throughout the year, share prices and the level of market activity took off. In January 1987 the FTSE 100 was at 1,680. Sharp rises in January and February took it to 1,980 (a rise of 18% in a few weeks). After a pause for breath in March the Index rose another 11% in April and May, nearly 3% in June and no less than 7.5% in the first two weeks of July, to peak at 2,443 at the close of business on July 16. In a little over 6 months the Index had risen by over 45%.
From then on it moved downwards during August, touching 2,185 – a fall of some 9% from its peak a month earlier. September and the first 11 trading days of October saw it recover to 2,302 by the close of business on Thursday October 15.
The night of October 15/16 1987 was also the night of the Great Storm for the South and South East of England. It all but closed the London markets on the Friday, the day the bubble burst on Wall Street. Feverish press speculation over the weekend caused prices to be marked sharply lower at Monday’s opening in both Tokyo and London. The FTSE fell to a low below 2,000 by mid-afternoon before recovering to close at 2,052, a fall of 250 points or 11% from Thursday night’s close.
There was worse to come. On Tuesday October 20, following the record-breaking 23% fall on the DOW the day before, the FTSE opened at 1,866. It fell to a low of 1,748 before staging a final hour recovery to close at 1,802. Wednesday saw a recovery of 140 points, but the fall began again, although less severe than on the Monday and Tuesday. Punctuated by the occasional rally, the market drifted lower and on November 9 closed at 1,565, a fall of 737 points or 32% from the close of business on October 15, just 15 business days earlier.
At that point the Index was 7% below its level at the beginning of the year, but it took over two years for the FTSE100 to breach its eve-of-crash level of 2,303.
In price terms the crash of 1987 was a rather nasty short term readjustment to a long term uptrend which had begun in the early 1980s. The froth or candy floss of the first nine months of the year was wiped out but it did not eliminate the serious long term investors who held their nerve. Psychologically however, especially in the UK, it had a major effect on the millions of small private investors who bought shares in the privatizations of the early and mid-1980s. In the ten years that followed only 250,000 of those small shareholders bought shares again.
So 31 years later could it happen again? YES is the clear answer, according to researchers from the Universities of New York and Boston.
A single-session drop as big as the one in 1987, for example, is predicted — over long periods of time — to occur once every 104 years, on average. So it’s possible we’ll get two 20% crashes in our lifetimes — or none.
Haven’t securities regulators figured out how to prevent crashes as big as 1987’s? After all, they’ve had decades to study why it occurred, as well as similar events like the infamous “Flash Crash” of 2010. Haven’t they instituted any number of structural changes designed to prevent future crashes?
The researchers believe such structural changes cannot prevent another crash. Every market, to a more or less similar degree, is dominated by its largest investors, and when something spooks those large investors into simultaneously selling, they will inevitably find ways of doing so, regardless of the regulators’ reforms.
The investment implication is clear: We should construct our portfolios so that declines like 1987’s won’t be fatal. If big drops are intolerable, then that probably means you are too exposed to the stock market in the first place. October is traditionally a highly volatile month on global stock markets and as indices turn away from all-time highs for now, the old adage remains as valid as ever “Trade what you see, not what you think”.
Today is the third Monday of October 2018 and last week the USA30 lost 4.2% and the UK100 lost 4.41%.
Stuart Cowell
Head Market Analyst
HotForex
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A simple investing strategy.Here is a simple strategy, or at least something to help build a bias.
I have not looked that much into it but I checked charts and it worked ALL THE TIME FOREVER AND EVER.
I did not want to share anything lately, but seing how idiotic the cryptoers are, how there have been a new bubble every 5 years for the past 400 HOW ARE PEOPLE THAT STUPID HOW DO THEY KEEP FALLING FOR THIS MOOONKEYS!
My top strategies (short term) have worked forever (no one figured them out really? or?), I got some that are completely unrelated totally different strategy with different tools to feel completely safe, but ye I am not too worried now, so I can share (not my top strategies thought, these are top secret).
Got one with 70% winrate and a RR of 2 that's probably the best strategy ever invented by mankind or just made public lol. Oh it is my worse one.
You can check what MA200 daily gives, but EMA15 on monthly chart is so much better.
When price is clearly above it you could keep opening long swing trades for years and win right?
Or buy short term when it gets visited, perhaps.
You might have heard of the rule with the daily MA200
Works 60% of the time everytime.
But with EMA 15 it works 90% of the time everytime (I do not know actual numbers have not really tested this strategy).
Can be improved of course, just an example and something that might be useful. Stock market has a bull bias, so best to be more selective with short.
Or not short at all
Oh and if you are thinking "meh I want 50000% gains on my 15$ investment this is bad", this works with billions of dollars np.
Maybe I'll use this when I made huge GAINZ from short term trading FX & indices.
And the moment you've all been waiting for:
Hey, works even better with the 3 month chart:
Nasdaq IXIC - Finding the 9 year cycleMarkets are more predictable than we have been led to believe. Here we are going to examine the 9 year cycles found in the Nasdaq composite.
This is a follow-up idea from my previous idea which was Lesson one in Market Cycles in the DOW JONES INDUSTRIAL AVERAGE. Please follow that link for a more detailed explanation on this.
In the Nasdaq we can see an (approx) 9 year half cycle which is very consistent. It actually is closer to approx 9 year 3 months. But you should know that the time between each line is EXACTLY the same. In the method I use, I use the fib time zone tool to create lines which all have the EXACT amount of time between each line.
As I said in my previous idea, there are multiple cycles on different time frames and different frequencies all occurring simultaneously. If we only focus on one particular cycle, we will not have enough information to know how to trade. But when we calculate the net effect of several cycles, we will have a much better idea and information for FUTURE predictions. Please read my previous idea for more info on that.
In addition to the 17 year Secular bull and Secular bear markets, we can see this 9 year (approx) cycle which also is present in DJIA.
The green line represents the LOW Point or trough of the cycle and the RED line represents the PEAK of the cycle. The GREEN ZONE starts at the GREEN LINE and goes to the RED LINE. The RED ZONE starts and the RED LINE and goes to the GREEN LINE. Remember that a GREEN ZONE will have stronger GROWTH - GREEN = GROWTH and RED = REST. But the 9 year cycle and 17 cycles are not the only cycles occurring. There are others. So the individual cycle will not explain all of the movements int he chart.
Can you see how near the end of the GREEN ZONE (before the red line) the growth gets stronger? And near the end of the RED ZONE, it gets weaker. Imagine this a cycle of fluctuating energy -- the green is a positive energy and the red is a negative energy. The energy is highest as we reach the end of the GREEN ZONE, and energy is lowest when we reach the end of the RED ZONE.
We will also explore other cycles and other charts soon. I will soon make a chart where I will show both the 17 year cycle and 9 year cycle on the SAME CHART. There you will see how when both cycles are GREEN the growth gets much stronger. Please STAY TUNED for more IDEAS.
I also will be analyzing BITCOIN using the same method. You may save my profile so you can see more ideas as I post them.
Please feel free to give your comments and click like if you like the idea.
Dow TheoryHere is a prime on Dow Theory to help you get on the right track.
Charles Dow was an American journalist. He founded the Dow Jones & Co., created the Dow Jones Industrial Average (DJIA), founded the Wall Street Journal and created the Dow Theory, the basis for technical analysis (which is the important part for us). All in the XIX century.
I will use the Dow Theory, and just that, to analyze the $BTCUSD daily chart from the beginning of 2017 to today. You will learn, I hope, the basics and see how to implement a very simple, but effective, trend following strategy using just that.
Dow divided trends into 3 types: Major, Intermediary, and Minor. Minor trends are fluctuations inside Intermediary trends, which are themselves fluctuations inside Major trends. In this image, I've drawn Major trend components in red, Intermed. in orange, and Minor in yellow.
Minor trends aren't very useful and Dow considered them to be distractions, noise, so we'll ignore them. Notice how during the bull run the Intermediary trends kept forming higher highs and higher lows, that's the very definition of an uptrend.
A bull market is simply a Primary trend going up, so we were in a bull market. But not just any bull market, a parabolic bull market, since the trend was accelerating, getting always more vertical, higher prices in smaller times.
Dow called each of the Intermediary trends "Swings" on the Primary trend. A Successful Swing (in an uptrend) happens when price makes a higher high, followed by a higher low. A Failure Swing happens when price fails to overcome the previous high and breaks the previous low.
A Failure Swing is a reversal pattern, from it, you can derive other patterns you probably know: Double Top, Triple Top, Head & Shoulders... (And their bottom counterparts).
Dow also divided each trend into 3 phases.
For bull:
I) Accumulation, when smart money starts buying;
II) Public participation, when retail investors notice the trend and start buying;
III) Excess, when the media starts calling the general public attention.
For bear:
I) Distribution, when smart money starts selling;
II) Public participation, when retail investors start selling;
III) Panic, when the broader public starts panic selling.
I've drawn these phases in green and purple.
Dow Theory gave us 4 signals the bull run was ending/ended:
1) At 17k, when price couldn't overcome the previous ATH, starting a Failure Swing (that's when I started selling a little);
2) At 15k, when the Parabolic trend line was broken (sorry @parabolictrav) (I sold more);
3) At 12k, when price broke the previous low, thus confirming the Failure Swing (Here I sold the bulk of what I planned on selling);
4) At 11k when price swung again - twice - at the previous low, but was unable to break it.
For 1), according to Dow, we even had one more signal: the low volume. Volume confirms price action.
Should price break our previous low @ ~5.9k, Panic phase begins, possibly taking price to one of the accumulation regions of the bull run: ~4k and 2.6k.
(Remember: Support and resistance are regions, not solid lines.)
With this, I hope you can better understand where all TA springs from, thus learning to use it correctly. For more info on Dow Theory and everything TA related, read this book: www.amazon.com
Late Cycle... or New Cycle? When will it end!Its worth considering what market cycles can tell us about when this run will end. I won't (can't) explain the logic behind cycles, but they appear in every aspect of nature, which includes human behaviour. Seasonality is a well known example.
Using the Dow Jones as a barometer, its clear that there were 7 years between the 2002 and 2009 lows. We can't predict exact business cycle lengths, but it would seem from recent history that the next could have ended somewhere between 20015 to 2016. Because this did not appear to happen, investors now worry that a correction is overdue.
But what if the cycle low did happen? The market did not in fact move for nearly two years - from January 2015 to the elections in 2016. If true then the next mid-cycle, marking a peak, is towards the end of 2018. Interestingly this coincides with US mid-term elections, and in Europe the exit of the UK from the EU. 2018 could also mark the turning point for 'Quantitative Tightening' and monetary policy.
Momentum certainly is driving prices higher for now; reflecting easy financial conditions, low unemployment, and reasonable growth.
Behaviourally, a bull market end when 'bears' throw in the towel, and euphoria reigns. For any market, it creates a simple demand/supply imbalance. This cannot be said of the current state, and so we may look to 2018 for the final phase.