SPX - 2000 and 2020 - 20yrs Apart - Same Old PatternCall me crazy, but there appears to be a tremendous similarity between the price action now, and during the late 90's and 2000 tech wreck, there is one key difference, that is the 2000 price action topped out and rolled over after the final wave up, whereas the 2019-20 market found a friend with the fed's injection of liquidity into the repo markets.
The end to QT and the September repo intervention (around the highlight region) was the point where the price broke out and the non-stop rally into 2020 began, however, as you can see we are at crucial overhead resistance (going back to 2012), whilst it would not surprise me to see a melt up phase (more so than we are already experiencing) and a blow out of the resistance, the probabilities of a continued rally after the fact is dubious at best.
Food for thought.
- TradingEdge
Bubble
The biggest Bubble Ever Blown!Beware here....the rising wedge is the final wave of a bull market. Expect a big pullback in 2020. If there should be none there will definitely be a 50% pullback following the election. No need to get short until the support line of this move is broken and then becomes resistance and a Fibonacci level has been reached simultaneously. Make no mistake this is a bubble. However Bubbles can go on for a long time. Stocks are way over valued. Lending has fallen off a cliff in the Feds latest report. You can usually get out without enduring much damage on the rebound. The Fed just injected massive amounts of money into the banking system in October. This causes banks to have to raise cash reserves. Banks raise cash reserves by slowing lending and selling risk assets to buy treasuries.
AND WHEN MARKETS PANIC AFTER GOING WILD!The DJI was dented significantly over night by three main events:
1. Trouble in Iran.
2. China - withdrawing some companies from the LSE
3. North Korea - powering up to cause America a headache.
There was panic selling in the middle of the night which started with the news on Iran.
Important trend lines up to 2 hourly were penetrated.
Could this be the pinprick that pops the bubble? We'll only discover - after the pop! LOL
WHEN MARKETS GO WILD! The DJI, S&P500, Australia200 and the DAX all went wild today.
No predictions in here. This is just the big picture of the daily time frame.
I have to say that I am totally surprised by the DJI pump north. This markets is highly overvalued something like 17-19 times that of fair value for stocks comprising it. I won't go on much longer about that, we've seen markets go wild before e.g. dotcom bubble.
Theory of curves and rising wedges failed here. These things do no rule markets.
The FED has given the implicit guarantee, and the big boys took the markets well north.
There's QE4 and soon QE5 coming up. So north is now the greater probability. I'm out because this is a highly unstable situation. Oh - but it's not QE because the FED says so - riggggghhtt! LOL.
The POP is coming - and everybody wants to know when. Look, it's like bad weather. You can see the storm clouds gathering but you just don't know when the heavens will open on you with a downpour.
scriptB showing nasdaq is toppingscriptB in scalp mode has shown great buy and sell opportunities over the previous years. however divergence is flagging at the top.
using scriptb with basic volume we can see price has risen on declining volume and as it approaches the top a juicy short can only be imminent.
to learn how to access these scripts please visit tradingscripts.best
POP!! IT'S COMING!What people want me to do is tell them when the bubble is gonna pop!
Well, well - I can see the weather outside my home is setting up pretty badly, but I can't tell when a downpour of rain is gonna come! I'm as I'm so bad at weather forecasting - how on earth could I possibly forecast market crashes?
All I know is that when I see bad weather I'd better wear a raincoat or carry and umbrella - or alternatively don't venture outside! Is that okayyyyy? :) :)
6K is imminent, $5.000 soon.As you can see BTC is repeating the same pattern which was played out the previous year, just quicker.
if 7.050 is broken, which is most probably scenario, then 6k will be displayed for a few days as the new support .
The chart is showing up 200EMA indicator , the only reliable indicator for BTC .
This idea displays an unavoidable scenario: bulls are doing their best to stop the price crash without luck. BTC will drop to $5.000 in the following weeks (1-2).
On the other hand the volume is decreasing, which supports the idea about sideway trading = further price crash.
As previously discussed, 200EMA is so far away, minning cost s for most machines are around 3k, and otherwise, bear in mind about minners have been able to still minning with losses for an average 6months according to previous halvings.
In a nutshel, most of indicators show up strong SELL signals.
There's a huge descending triangle which has been forming when BTC hit 14k 5 months ago, this retracement was expectable.
Furthermore, there's an special interest for whales about stretching out the bottom ($4.000) in order to make bigger gains in late 2020 (Expect a cup and handle pattern which plays the keyrole for trend switcher).
BTC probably will drop to 6k in the following day/s and if that happens, we can talk freely about 5k before Xma s.
Open shorts whenever you got a profit (even if that's less than 1%) while you can do it. Stop losses = 1%.
BTC repeating patterns, what a surprise. 5k in 1-2 weeks !!!!!As you can see BTC is repeating the same patter n which was played out the previous year, just quicker.
if 7.100 is broken, which is most probably scenario, then 6k will be displayed for a few days as the new support .
The chart is showing up 200EMA indicator, the only reliable indicator for BTC .
This idea displays an unavoidable scenario: bulls are doing their best to stop the price crash without luck. BTC will drop to $5.000 in the following weeks (1-2).
On the other hand the volume is decreasing, which supports the idea about sideway trading = further price crash.
As previously discussed, 200EMA is so far away, minning costs for most machines are around 3k, and otherwise, bear in mind about minners have been able to still minning with losses for an average 6months according to previous halvings.
In a nutshel, most of indicators show up strong SELL signals.
There's a huge descending triangle which has been forming when BTC hit 14k 5 months ago, this retracement was expectable.
Furthermore, there's an special interest for whales about stretching out the bottom ($4.000) in order to make bigger gains in late 2020 [/b (Expect a cup and handle pattern which plays the keyrole for trend switcher).
BTC probably will drop to 6k in the following day/s and if that happens, we can talk freely about 5k for mid December .
Open shorts whenever you got a profit (even if that's less than 1%) while you can do it. Stop losses = 1%.
80% DROP !!!!!!!!!!!!!!!!!!!! -----> BTC, you're NEXTTOP: 0,060
CURRENT: 0,013
NEXT BOTTOM: 0,002
Bubbles doing bubbles thing.
You know that BTC is listed for the same cycle.
SSI SHORT (will be below $3 before April 2020)SSI is up 915% since JAN 2019. Time to ride it down. Bitcoin and tulip mania for discount retail? Next bubble...
Initiated small options trade SSI APR 2020 $5 PUT. Ten contracts at 1.30. Break-even = $3.70. I'm betting this stock trades below $3 before April.
A speculative hedge against Soy.Now, generally, I think giga-shorting indices as they push all-time-highs every single day is a bad idea.
Trends shall remain irrational longer than you can remain solvent, the Federal Reserve is incessantly printing away your purchasing power which means there's more money to pump your stonks, and trends, namely the centuries-long bull trend, have been so permanent in the legacy markets that bears are either cocky and un-informed, or they've lost the majority of their market shirt already.
Linked below as the related idea is my thesis on the upcoming economic recession which won't show up much on the index charts.
However, sometimes speculative hedges are necessary and as we head into the holiday season, the consumerist mania increases as does the mental illness and the $soy.
Utilizing some deep proprietary magic with the 1.618 fib as a confluence tool for surgical position leveling, I have marked all the levels and level clusters otherwise I've deemed important, giving us a nice picture of the market field ahead of us.
Looking for an extreme blowoff top for the best possible risk/reward, earlier entries are also acceptable, but the stop leveling is very important.
Sketched out with the pen tool is how I would see it breaking down into the levels below.
A hedge is just a hedge, and betting big counter-trend is one of the riskiest things you can do.
Stay safe out there, keep your people safe, and dodge the $soy.
$6 BILLION BUBBLE POP! This is a rare and exciting example of a bubble that popped.
Testing the theory that the best time to buy is when there's blood in the streets, would anybody buy this stock now?
Well I don't imagine many people would buy now. I'm not tellin' what I'm doing!
This is not a recommendation to trade securities. If you take a position and lose your money, kindly sue yourself!
WMT - harsh rejection after slight ER beatOn the left we have the daily chart, and on the right we have the monthly chart. Yes, the month isn't fully formed yet. But the monthly chart illustrates a top trend that casts a shadow of doubt over the daily chart that I wanted to point out. Look how this earnings breakout was smacked back down below the blue top-trend. Also, note how volume and RSI during the 2012-2015 rally diverged and ultimately broke down. The volume is similar now, as is the RSI.
Monthly chart can take months or even years to play out.
Having said that...
The daily chart shows good volume which indicates buyers stepping in. Note the white bottom-trend line, if we can hold above this white trend-line, I think we make another attempt at the white resistance level at $120.71. If we break below it, I have my eye on the $114.58 to $115 range.
OBV is currently favoring a pullback. Let's see if this short-term trend can hold for the bulls.