SPX | Another LieOrdinarily, I wouldn't contemplate them... but these *are* extraordinary times.
- G-Man
A bank just went broke, oops! It was certainly something we expected. With money literally burning, these kinds of events are expected. So what might be ahead of us?
The rate-hike schedule went relatively smooth sailing until now. But just last week something changed... When the first bank failed, the consensus shifted from calm to fearful.
Now the market is pricing-in the coming yield-peak. This goes hand-in-hand with the yield-curve correcting. At that time, the market expects only short-term yields to increase, while long-term ones will slowly and steadily drop.
Back in 2018, we were begging for the FED to lower the interest rates so as the economy to "grow".
Little did we know, that by lowering rates we were pulling the rug from underneath our own feet.
Equities growing when cutting rates is cheaty...
Now we have the same. We beg for the FED to stop burning money and calm the liquidity crisis that is building-up around us.
This bankruptcy may prove an event that causes even a premature FED pivot. At any rate, both charts and simple logic call for a pause in the rate-hike schedule.
So what can we expect? What I talked about in the original cake. Unsurprisingly, I expect equities to grow next year. Their price will increase while their true "value" will drop. While a sell-off may occur in the weeks to come, this will give the signal that the bottom is in. I believe however that this capitulation will not be the main "event".
The 2018 "Recession" had some violent drops. A sudden 20% drop in 3 months in Q4-2018 was definitely something that conquered the headlines. Passing through that gave the signal that a bottom was already in. The same consensus may be brewing now. Surely the FED cannot tighten further. Surely they will step-in an cautiously calm the financial markets.
The calm will come, and it will stay for some months. Until the calm erodes. And if rates drop, the economy itself will silently erode. Until the building collapses, at a time nobody expects it to.
Tread lightly, for this is hallowed ground.
-Father Grigori
PS.
There are two ways to become rich. Theft and Inheritance.
-Aristotle Onassis, Billionaire
For the rich to get richer, they must rob. They are robbing the unknowing gamblers/investors. In the era of information, in order to rob you must fool the public by changing-up the picture.
Present the eroding building (economy aka. SPX*yields) with a luxurious cover (SPX). And hide the treasure in the dirtiest place of all.
Find the treasure. Don't fall for the trap.
D-DJI
DOW JONES Trade the breakoutDow Jones is rising after the sharp fall earlier today on a pattern that might be an emerging Channel Up.
The 1hour RSI got massively oversold at 13.50.
Buy if the price breaks over the Falling Resistance and target 34250.
Sell if the price breaks under Support A and target 33235 (Support B).
Previous chart:
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DOW JONES The MA100 (1d) is supportingDow Jones has been closing daily over the MA100 (1d) for the past month.
It is making Higher Highs since the March 20th bottom, indicating that the trend remains bullish.
Trading Plan:
1. Buy as long as the price holds Support (1).
2. Sell if it breaks under it.
Targets:
1. 34500 (Resistance 1 and Rising Resistance).
2. 32800 (MA200 1d).
Tips:
1. The RSI (1d) has been rejected on its MA level and is making Lower Highs. That shows a Bearish Divergence that may eventually favour a Support (1) break.
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Notes:
Past trading plan:
The Taiwan BRICS War Leading To The Biggest Meltup In History
Can we not see what's happened over the last days? the exact repeat of 2009 instead of QE straight away the FED has resorted to using terms like "BTFP program" and offering zero percent loans to the bigger banks to bailout the smaller banks.
I thought the FRED would have allowed the banks to go down for a market reset "what everyone is expecting" but the response is if the trend line breaks the entire US bond market breaks + the global financial system is in meltdown meaning the FRED and the US Government won't and cannot allow it to happen, oh and the Treasury is almost broke defaulting meaning QE will be turned on within the next months or a "BTFP treasury program".
Lets look at the facts that's got me worried
US dollar dominance will collapse due to QE needed to fund the US government and bailout markets to generate GDP growth
Since 2009 Expenditure on the military in China has gone parabolic from 96 Billion to 293 Billion in 2021 - China also purchases mass gold with Russia (what the hell are they preparing for or doing?)
In 1919 the USA was the top military spending by country
In 1920 the Russian Empire upped military spending passing the USA
In 1922 the Soviet Union was formed spawning the rise of the German dictatorship
What does this mean? it means the Soviet Union is repeating with BRICS and I'm sure the USA is aware of that.
All BRICS nations are printing money like crazy funding gold / military purchases like they are about to disregard the FIAT system.
USA has one option and one option only to defend the global dollar.
Start a counter offense on completely taking Taiwan controlling the entire semiconductor market limiting BRICS economically, and handing over the technology keys to the USA
meaning they can set the rules and prices and force demand back onto the USD system.
If this outcome comes to reality, we will see money printing in the USA disguised flooded into defense and a full NATO move surrounding Taiwan.
Followed by this will be stocks rising + inflation heading up + rates heading lower - -
The goal of this is to devalue the currency and use WAR to take economic assets by force from BRICS causing the wealth to be returned back.
This should answer your question on why the Ukraine War? Why the Red Balloons? both NATO / US + BRICS are using these as a testing ground to predict retaliations for the main goal Taiwan.
If the US / NATO wanted this war to be over in a day it would be. If China / Russia wanted this war to be over in a day it would be nobody ask why its not.
Translation lets steal Trillions from the public and spend 10 billion in Ukraine while storing the rest for R&D for the real event.
5-2-23 [dow jones]gm,,,
haven't been posting anything public lately - too busy with the private content.
----
created a few minute window today to write this up, and a few others.
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i am envisioning a massive move to the upside on this dow jones index.
estimating for it to take out the all time highs.
> sounds bananas right?
> maybe to you, anon.
----
og post:
DOW JONES Small pull-back possible but bullish long-termOne and a half month ago we gave the most optimal buy entry for Dow Jones (DJI) exactly at the bottom of its 4-month Channel Down:
Right now the index is trading inside a shorter term Channel Up that is technically aiming at the 34900 Resistance, which is the December 13 2022 High, as part of its Higher Highs process. If however the 4H MACD currently completes a Bearish Cross, it is more likely to see one last pull-back below the 4H MA50 (blue trend-line) and near the 0.618 Fibonacci retracement level (33600) before the next rally.
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Short - 15M TimelineDear All,
Based on my analysis its a clear short in 15 Minutes timeline for intraday traders.
So now back down to the 200 day?Traders,
We have now touched the underside of our macro uptrend (3) three times and the bulls have been unable to break to the topside again. Is is time for them to sit the bench for a few weeks, get their wind back, and let the bears take us back down to retest that 200 day one more time? It might be.
Stew
DJI - Bearish Harmonic - Swing TargetsPattern
According to our machine algorithm, a bearish harmonic pattern has been identified in the DJI index.
Pattern suggests a potential downward trend may be starting soon.
Short targets have been determined based on the analysis and are indicated on the accompanying chart.
These targets can serve as reference points for traders looking to enter short positions or consider profit-taking levels.
SPX | The US is FailingEurope and especially Germany (the biggest power in Europe) have suffered this year due to the energy crisis.
There is more background though... The US has performed well until now. This period of US dominance is failing.
The chart above is respecting a long-term trend. Now, price is at the bottom with stochastics primed for continuation of the uptrend for Germany.
To effectively compare Europe and USA we need to "fix" the indices of each country. Currency strength should get out of the picture for us to better analyze equity performance between countries.
So, the DEU40 Index of Germany is multiplied by EURUSD, to get it denominated in Euro. This should always be done when comparing items of different origin (different currency).
As an example, for reference I will also analyze Turkey.
It is as if Turkey is performing incredibly... The General Index XU100 has gone exponential. If we plug in the currency, the picture changes.
There are more evidence against the US...
Turkey is set to overperform the US in the years to come...
Many countries follow Turkey's example:
Honestly, the most dramatic of them all is China. A substantial diversion from it's trend, with a massive double bottom shaping. Will price seek the trend?
Is it a new beginning for China, or the beginning of the end?
Tread lightly, for this is hallowed ground.
-Father Grigori
UPDATE: US 30 still on its way up to 35,714Reverse Cup and Handle formed on the US30.
We then had a break above which wasn't a strong one.
However, the price has been making higher lows and it's setting itself for a rally (by the looks of it).
7>21>200
RSI>50
Target 35,714
SMC:
Two Sell Side Liquidity Order Blocks are now evident with Smart Money buying each time it makes a higher low.
This is showing the bullishness is still to remain.
Happy to be bullish bias.
DJI - Falling Trend Channel [MID TERM]- DJI is in a falling trend channel in the medium long term.
- This signals increasing pessimism among investors and indicates further decline for Dow Jones Industrial Average.
- DJI is testing resistance at points 34100.
- This could give a negative reaction, but an upward breakthrough of points 34100 means a positive signal.
- DJI is assessed as technically negative for the medium long term.
*EP: Enter Price, SL: Support, TP: Take Profit, CL: Cut Loss, TF: Time Frame, RST: Resistance, RTS: Resistance to be Support LT TP: Long Term Target Price
*Chart Pattern:
DT - Double Top | BEARISH | RED
DB - Double Bottom | BULLISH | GREEN
HNS - Head & Shoulder | BEARISH | RED
REC - Rectangle | BLUE
iHNS - inverse head & Shoulder | BULLISH | GREEN
Verify it first and believe later.
WavePoint ❤️
US30 DOW JONES CHARTUS30 (DOW JONES) CHART ANALYSIS POSTED ON SUNDAY 30 APRIL 2023
Let's see how this pair will perform based on the analysis.
Make sure you do your research and based on your confluence please look for the entry.
Don't rush your trades without any confirmation.
Trade safe and use always proper risk management.
Thanks in advance for checking my trade idea.
M2SL | Mo Money Mo Problems!Oh boy, many of them problems...
Sometimes there are cycles, some cycles are shorter than others.
In chart analysis, we are familiar when we analyze trends. Either short term or long term.
The economy does not function only in trends. There are cycles. The most common / important of cycles is the yearly one.
Unfortunately, cyclic patterns may prove tricky to analyze. But they are very important.
Since I haven't taken the time to create TradingView indicators that calculate cycles, I will instead use a spreadsheet.
For the following charts, I basically take all historical data of a cyclic chart and export that data. For every week or month, I calculate the average distance from the mean. With that, I try to calculate the "expected distance" from the mean, for each time of the year. Natural Gas prices one might say, are lower during the summer months. So an unusually high price in summer may become explosive during the winter.
Today's main subject will be money supply. Since the January's M2SL data hasn't yet updated, I will try to guess how much money supply we can expect the following months. There is a cousin to the M2SL index which is updated weekly, and it is WM2NS. This index however as you can see on the chart above fluctuates from M2SL throughout the year. So, the regular WM2NS price should be adjusted based on it's cycle against M2SL.
This curve shows the expected yearly fluctuation of the ratio, compared to the mean,
Specific care has to be taken when we calculate the "fundamental cycle duration". Some cycles last 2 months, 3 months, or 6 months. The fundamental cycle of the economy is 3 months which repeats 4 times during the year. While this may prove irrelevant, It is incredibly important in the "cycle spectrum" creation.
If we consider a 1M duration of the fundamental cycle, the chart isn't as representative as the 2M one.
The Diesel / Gasoline cycle is incredible. This comes to prove that these two are highly correlated.
With the same method we can compare gasoline price with crude oil price.
For fuel prices, it seems that the end of the year can serve as a good baseline for the outcome of the next year. Absolute and relative are at their minimum in this time of year.
Similar charts can be drawn for DJI. While more chaotic (wider error lines), weeks 10 and 44 (March and October-November) appear as the weakest periods of the year.
So what M2SL price can we expect in the following days? I am an impatient man, I cannot wait for the results!!!
After a substantial drop in money supply, one might fear that further downside is to follow.
There are charts that calm such fears. Price has never touched the Quadratic Kernel indicator (a form of historic moving-average), and it may never touch it.
When RRPONTTLD increases, money supply decreases (I am oversimplifying because I don't know the exact specifics).
Bullish stochastics may signal more upside for money supply.
Finally, I will analyze the protagonist chart:
Suddenly, the 1.2% increaase doesn't sound that extraordinary...
Sometimes, a simplistic analysis like this one above, may prove correct like this one below:
Final thought:
With inflation higher than expected and money supply about to increase yet again, how high of an inflation can we expect?
With commodities bull-flagging against money supply itself, and Bitcoin bull-flagging against the Tech-Bubble, things can get pretty bad for equities...
Tread lightly, for this is hallowed ground.
-Father Grigori
PS. I have analyzed several cycles for different kinds of commodities. If you are interested ask me so as to post them.
SPX | We are not out of the woods yetEverywhere good news, inflation is dropping, the FED is about to pivot. Energy is dropping and every single technical indicator is telling us that we are in a "perfect bottom". Many argue that we are in a similar situation to 2015, at least the price action of the main indices. So let's discuss some arguments and figure this out. First and foremost, price action.
Price action and indicators are ultra-bullish
One of the "bullish" indicators is the well-known Stochastic RSI. Stochastic RSI analyses RSI. The 1M and 2M oscillators are at a bottom. So we expect a swing upwards.
I have circled the RSI in two separate times, in 2015 and now.
RSI has to go through both the 50 mark, and it's WMA. There is significant resistance above.
There is more...
On the peak of the stochastic on 1W, the difference is night and day.
In 2015 we had already easily skipped an "uninverted ribbon", while now we are into significant resistance. This week we had outright rejection.
This tells us that the 1M oscillator will have much trouble swinging upwards, since the 1W oscillator is at it's peak and price rejected on resistance. A successful swing should be verified by many oscillators.
If you look at the 12M chart, you will understand.
2000: Stochastic begins a move downwards, RSI below WMA (resistance).
2015: Stochastic is roaming upwards, RSI above WMA (support).
2022: Stochastic begins a move downwards, RSI below WMA (resistance).
DJI is super strong, and above the cloud and ribbon
Yes it is. But for the last 20 years, DJI stood high in periods of recession.
The only exception is the "Trump run era" I made up. When Trump became president, he did made all sorts of "gifts" to blue chips.
A comparison between DJI/M2SL and SPX/M2SL in the same period.
Right now, DJI is hanging on, amidst a painful recession for most equities.
Also look at energy.
SKEW is inside a falling wedge.
Several weeks ago, it reached an all-time-low. Now, 1M and 2M stochastics are ready for prime time.
The same holds true for VIX
The FED is burning money, at any moment a liquidity crisis can begin.
Ever heard of Wyckoff Distribution? It is the most accurate analysis of stock market. It is the most fundamental behavior. Here are some distributions, in wildly different timeframes. All featuring DJI.
DJI/SILVER - 100 year distribution
DJI*US10Y - 25 year distribution
DXY*DJI - 1 year distribution
I'm out
www.youtube.com
Tread lightly, for this is hallowed ground.
-Father Grigori
DOW on a retracement 🦐DOW on the 4h chart is testing the 33800 area.
The market after the bullish impulse may be looking for some retracement.
At the moment th index is trading above a confluence area between the structure and an ascending resistance and according to Plancton's strategy IF the price will break below we can set a nice short order according to the CPS rules.
SPX | Spaaace!!!Spaaaaaaaaaaace!
Let's make a quick party, also bring a cake to celebrate! Make it quick, because it's late and I am tired and I should be sleeping by now.
We have reached the top of the world. Well, equities have. It is time for them to lose value big time. Their successor is here, bonds. I have talked about it extensively in my last idea.
This is an urgent idea I wanted to post. It seems that day-by-day we might be witnessing the peak in equity price.
And this idea is dedicated to the person who gave me the crazy idea to analyze something like that.
The idea is simple. We all know the immense yield inversion, it is definitely ugly... What if we found a way to analyze SPX based on the yield inversion itself? That is the idea of @CryptoTaoist and I am very thankful for it. All credit and all the likes this idea gets, are dedicated to this person!
Yield curve is a way to calculate money creation (normal times) and money destruction (inverted times).
Green is good for money, red is bad. No wonder dollars are green but flammable!
We also know that yield inversion is strictly bound to recessions. I will naively try to add these two together, equities and inversions to get an idea of when the recession is actually beginning.
Me and others have posted about how the US isn't in a recession yet. This can be seen if we multiply SPX by yields. In a sense, this year we had no recession for the US economy.
Please bring a real cake, not this lie...
The next part is analyzing whether SPX is performing good or bad considering the current rate of money creation / destruction. In a sense, dividing SPX by the yield curve. If you calculate the yield curve as US10Y-US02Y you will have trouble analyzing it compared with SPX.
Captivity of Negativity. Zero values for the denominator make a mess of the chart.
You could instead opt for a bodge, to fix the denominator by adding 1.
While this works, it is not harmonic enough for my liking.
I will create a new yield curve, but instead of standard yields I will calculate it using modified-yields.
More about the modified-yields in this idea below.
The new yield curve (in blue) is following the standard yield curve (in orange). So it can be considered a satisfactory replacement.
Do note that on the numerator we have modified(US10Y). On the denominator we have modified(US02Y+1). I add this +1 so as to further normalize the chart. In normal times US10Y and US02Y have a difference of ~1%.
To conclude, we divide SPX with the modified yield curve and we see the following:
A surprisingly smooth chart shows us what we expected, that the US isn't in a recession yet. It is also incredibly straight, from 2010-2022 and today. This means that yield curve and SPX correlate very well, if we modify them appropriately.
In a sense, dividing SPX by the yield curve calculates the following:
How much SPX increases as money gets destroyed?
If SPX can swim against the tide (money destruction) this means that it is very strong. A strong economy can hang on even when money is destroyed. US hanging on even with that immense of money destruction, means that it was (and perhaps still is) a very strong economy, which can withstand a heavy beating.
Note: DGS2 is a good replacement for US02Y if you want to analyze old historical data. Feel free to notify me of indicators that calculate even older yields of the 2 year bond.
But where is the ceiling in this chart?
While the 2.0 Retracement proves a significant resistance point, it is inconclusive of whether it is the terminal ceiling.
One answer may lie in the following chart:
(I knew the cake is a lie!!!)
We have divided by M2SL and multiplied by 10^12 to bring numbers to measurable scale. A normalized chart appears, and we also observe a curious ceiling appearing.
Price obsessively tries to penetrate this ceiling, just like DJI/M2SL did in 2018-2020
Are we witnessing the very last weeks of the equity bubble?
Tread lightly, for this is hallowed ground.
-Father Grigori
Captivity of Negativity is a reference to Bagwell of the Prison Break TV Series.
DOW JONES Potential Head & Shoulders and invalidation level.Almost a month ago we gave the most optimal buy entry for Dow Jones (DJI) exactly at the bottom of its 4-month Channel Down:
Right now, we see an emerging Head and Shoulders (H&S) pattern, which is a technical pattern typically formed on market tops. The key now is the 4H MA100 (green trend-line). A closing below it, will most likely accelerate the pull-back towards Support 1, in which case we will target 33330.
A 4H candle close above 4H MA50 (blue trend-line) will be a bullish break-out signal and should invalidate the H&S pattern, targeting first Resistance 1 and Resistance 2 in extension, in which case our Target will be 34500.
Note the the 4H RSI has been inside a Channel Down since April 04, thus a big Bearish Divergence when compared to the price's Channel Up.
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DJI Is Bearish! Sell!
Please, check our technical outlook for DJI.
Time Frame: 1D
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is on a crucial zone of supply 33780.1.
The above-mentioned technicals clearly indicate the dominance of sellers on the market. I recommend shorting the instrument, aiming at 33152.6 level.
P.S
Oversold describes a period of time where there has been a significant and consistent upward move in price over a period of time without much pullback.
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DOW JONES Still bullish, one last pullback possibleDow Jones is under the 4hour MA50 for a whole day but still inside both the short and medium term Channel Up patterns.
As long as they hold, the trend remains bullish and we are targeting 34375. If the price crosses above Resistance A, extend buying to Resistance B (34900).
There is a probabilitiy for one last pull-back to the Rising Support around 33300 if the Channels break. That will still be a buy opportunity.
Previous chart:
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