$VIX hits top part of Symmetrical triangle$VIX rarely tends to trade in a small & tight range.
#VIX Sold off big last couple months & traded in a decent range for a bit & recently, including today, popped big.
As you can see it hit the top part of the Triangle Formation.
Hard to call here but stocks gaining some momentum, being that many were OVERSOLD, including $DJI & $NDX, $SPX and so on, is not out of the question.
Risk reward @ day lows in #stocks was good. A lot of fear out there is good for reversals.
Keep eye out on 4 hour charts for a good idea of where we stand.
FYI $DJI 4hour close was NOT the best setup BUT it did form a BULLISH Engulfing with GOOD VOLUME.
IMO 32.5k on #DJI is good & if it breaks & holds that is a good sign.
DJI
$DJI has HUGE BUY volume the last few hours$DJI bounce decently off support on daily charts.
This may take some time to heal. However, IF #stocks can hold for the next few hours it can be okay.
The only reason it's not pumping higher is $GS & $JPM, #banks.
On the 4Hr we see a DOJI formed MORE than 4 hours ago & on the CURRENT 4 hr candle it is being ENGULFED WITH VOLUME.
We want to see a close above 32k but higher will mean more conviction.
The belief is that #rates will take a pause while we have this bank fiasco happening.
32500 is our full exit point. Although we have been loosening positions in this rally for the last couple hours.
Would keep re-buying lightly on pullbacks. Bottoms can take some time to form.
11 Trade Ideas Predicting The DJI Crash | Where Is The Bottom?The Dow Jones Industrial Averages index has been holding much, much better compared to the S&P 500 and Nasdaq indexes.
While the other two indexes have been down considerably since we started to predict the crash (18% SPX & 25% NDX), the Dow Jones (DJI) has gone down only by 12%.
This is the last one of this series of articles.
Feel free to relax as we get started!
Thanks a lot for your support.
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Let's start with the chart above on the Monthly timeframe.
The DJI closed last month below EMA10 and it is now signaling lower.
We use EMA10 to gauge the short-term potential of a cryptocurrency trading pair, stock or chart.
So the short-term potential has gone bearish... This we normally say based on the daily (24 hours per candle) timeframe.
Since this is the monthly, each candle is ~30X stronger than the daily.
Which means that this very simple signal can yet be very strong.
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We started in late January to look at the Dow Jones.
We don't need/use 100 indicators, the very simple moving averages for us are more than enough.
Here we saw that the Dow Jones is no exception, it was also set to drop!
(Jan. 24) The Dow Jones Industrial Average Is No Exception (Crash)
Two days later we looked at the famous 'Falling Wedge" pattern and compared it to 2020-2018...
This one on the monthly timeframe.
(Jan. 26) Dow Jones Industrial Average Monthly Chart Analysis (30%+ Crash)
We can appreciate how the DJI was looking better than the SPX and NDX...
Yet, the indicators, such as the MACD, gave it away!
(Jan. 28) The Dow Jones Industrial Average: Not All Red
Dead cat bounce, anyone?
Easy to tell... We stay conservative though to not scare you away.
How to prevent a crash if the Feds policy do not change?
A: Impossible
(Feb. 7) DJI Weak Bounce
And here too for the initial phases of the correction we look at the classic ABC.
(Feb. 11) DJI Crash Last Reminder
To me, the next one was the biggest give away of all.
The long-term cycles are very strong but what to say when an index loses a 20 years long support?
We are talking about the MACD on this one...
(Feb. 14) DJI And The 20 Year MACD Support
We step back to sum it all up...
It is possible that the DJI goes for a 50% or more drop... Who knows, let's ask the chart!
(Mar. 4) DJI | Dow Jones Industrial Average (Additional 55% Drop)
By mid-March we shared the "bear-run"!
This is happening across all markets and will continue a bit longer before we see sustained/long-term growth.
(Mar. 13) DJI Bear Run
This is all for the major US Indexes.
We will go back to Bitcoin soon and then focus 100% on the Altcoins which is where the money grows.
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In all, we published:
(1) 26 trade ideas for the SPX (all bearish).
(2) 14 trade ideas for the NDX (all bearish).
(3) 11 trade ideas for the DJI (all bearish).
For Bitcoin (BTCUSD), we share the Macro/Long-Term view as well as the short-term bounces/moves when prices go up.
You can count on us being here by the time the bottom is reached and when we hit $300,000 or more in 2025 and beyond.
Namaste.
Analysis of a Crash Past & Present Here’s a 12M chart of the Dow. Before the Great Crash of 1929, the Dow bounced strong off the midline in 1922 before reaching out a peak at the top line of the trend channel, and then making a sharp reversal across the midline straight to the bottom channel, hitting its low in 1932 before the damage was done.
Turn the page to the present and the chart is so closely aligned it’s hard not to at least fathom the possibility. We bounced in the midline in at the end of the financial crisis in 2009, strong rebound to the top line peaking by 2022.
Just from a basic trend analysis, this reasoning is sound for where we land, no after how difficult it is to fathom, no matter how much we like to believe the market only goes up.
Add in Global events over the past few years, the global pandemic led to financial stimulus globally that acted to numb the pain & record profits for companies across industries meant combined, more money in the most hands at the same time than ever before.
It will take years for companies to achieve growth YOY after this, now add in inflation offsetting wage increases & decreasing profit margins. Global hostilities aren’t going away, regional banks maybe be the first trigger to hit the panic button as the collapse of Silicon Valley Bank is already posing a detrimental risk to major companies in the US and globally. Interest rates are continuing to rise, demand is peaking, and demand will not reach the levels of the pandemic fueled by stimulus and record profits for years to come.
This isn’t an Armageddon world end analysis, this is a sound conclusion to a number of major events on the global stage.
💾 DJI Bear-Run 2023 & Beyond | The New World OrderWhy do you think there is such a strong rush to close/shutdown everything crypto?
The traditional global financial system is about to crash and they don't want competition. Remember, they are owned by banks and banks are used to having a monopoly on money.
If the financial system crashes due to its many weaknesses, it will lose all of its customers to the other side.
If they can shut down the other side, people can just cry and rebel but they would have no other choice other than to use what is available.
Now there is an alternative.
So they will have to either come up with real solutions (not likely) or become obsolete as it is the norm.
The only constant is change in this world.
The DJI is about to crash.
We have a peak January 2022 followed by lower highs.
This month the DJI has gone below EMA10 and the indicators are trending down.
It seems that it will be worse than 2008... No worries, back in 2008 we didn't have Bitcoin, it will be interesting to see how things will develop this time around, to say the least.
Bitcoin was invented for this exact type of situation.
Will the experiment work?
Or will Bitcoin and Cryptocurrency go down with the rest of the old system that it is intended to be the solution for?
My money is on change.
If you look back at history, nothing ever stays the same.
Let it crash...
A New World Order will emerge.
Namaste.
The Bear Party Hasn't Even Started YetEvery major crash in modern history came after rate hikes completed. Either during the plateau or during the first cuts. No bulls can explain how we're going to avoid that fate this time. We hiked twice as fast as 2007 and 2018 hikes, yet somehow there's gonna be a soft landing? Yeah right LOL
It's already looking like a broadening wedge like 2000; and about to break the 13yr trendline for the first time since 2020.
See inflation chart below:
Worst case scenario(red), we get rapid deflation that causes a 6 month bull run at first, but ends with devastating crash. Like 2019, however we can't afford to write more stimulus checks. So there will be a depression, not a recession. No V recovery.
Best we can hope for is more inflation(yellow); so the government can try and print it's way out of debt. Chop sideways roughly -50% +100% for a decade or more.
Pipe dream is green, the Fed managing to thread the needle and get inflation between 0-3% for years to come. All while the U.S. Treasury manages to service it's interest payments, despite failing to close the gap between tax receipts and spending. This is not going to happen. It's physically impossible to produce 5M qualified workers overnight to fill the gap between job openings and job seekers. Layoffs won't help either. By then the recession is in full swing. Higher taxes coming as well. Growth is dead.
Best guess: current situation in MarketI think the market is consolidating for the next push up... but probably won't be consolidating here anymore, rather lower is coming... I'm fully expectant and prepared for LOWER LOWS to come... so if you want to follow idea on Long, do know it's early still...
Tape Wise, market flipped bull mode on October 13th... price going lower is not "PER SE" a bear tape.
I'll update if I sense the stink of bear taking hold of market... his claws printed in Tape... for now price is just controlabelly and smoothly cooling off & falling lower (remember, "velocity" is not all there is to bear tape... yes, bear tape requires velocity, but a relatively speedy down trend is not on its own a bearish tape...)
So: until Tape flips bear and trend is broken, we assume after lower prices, higher ONES will come...
DOW JONES 1929 - Worst is yet to come Federal Reserve raising rates vertical fasted in history.
1. More people getting bullish before mass bankruptcies are filed
2. Bull whip effect in full force too many new hired people from stimulus
3. FED are stuck and have to raise rates through a recession threat to defend the US Dollar and US bonds
4. They potentially avoided the blow off top but can they prevent the collapse?
5. Banks are running into liquidity issues already
6. Unemployment claims are skyrocketing from job layoffs not being reported.
Dow Jones : eyes on 29000My target for US30/Dow Jones is 29000
My reasons :
Technically, price failed to create new highs and it's a signal that bullish momentum is turning bearish, which will be confirmed if the weekly candle close below 32000
Fundamentals also are putting pressure on Dow Jones, as we have SVB saga, inflation, strong dollar, US debt deficit and more
Collapse Of The US Economy DOW AMERICA | Part Two
The Roaring Twenties roared loudest and longest on the New York Stock Exchange. Share prices rose to unprecedented heights. The Dow Jones Industrial Average increased six-fold from sixty-three in August 1921 to 381 in September 1929. After prices peaked, economist Irving Fisher proclaimed, “stock prices have reached ‘what looks like a permanently high plateau.’” 1
The epic boom ended in a cataclysmic bust. On Black Monday, October 28, 1929, the Dow declined nearly 13 percent. On the following day, Black Tuesday, the market dropped nearly 12 percent. By mid-November, the Dow had lost almost half of its value. The slide continued through the summer of 1932, when the Dow closed at 41.22, its lowest value of the twentieth century, 89 percent below its peak. The Dow did not return to its pre-crash heights until November 1954.
Skeptics existed, however. Among them was the Federal Reserve. The governors of many Federal Reserve Banks and a majority of the Federal Reserve Board believed stock-market speculation diverted resources from productive uses, like commerce and industry. The Board asserted that the “Federal Reserve Act does not … contemplate the use of the resources of the Federal Reserve Banks for the creation or extension of speculative credit” (Chandler 1971, 56).2
The Federal Reserve’s rate increase had unintended consequences. Because of the international gold standard, the Fed’s actions forced foreign central banks to raise their own interest rates. Tight-money policies tipped economies around the world into recession. International commerce contracted, and the international economy slowed (Eichengreen 1992; Friedman and Schwartz 1963; Temin 1993).
The financial boom, however, continued. The Federal Reserve watched anxiously. Commercial banks continued to loan money to speculators, and other lenders invested increasing sums in loans to brokers. In September 1929, stock prices gyrated, with sudden declines and rapid recoveries. Some financial leaders continued to encourage investors to purchase equities, including Charles E. Mitchell, the president of the National City Bank (now Citibank) and a director of the Federal Reserve Bank of New York.6 In October, Mitchell and a coalition of bankers attempted to restore confidence by publicly purchasing blocks of shares at high prices. The effort failed. Investors began selling madly. Share prices plummeted.
While New York’s actions protected commercial banks, the stock-market crash still harmed commerce and manufacturing. The crash frightened investors and consumers. Men and women lost their life savings, feared for their jobs, and worried whether they could pay their bills. Fear and uncertainty reduced purchases of big ticket items, like automobiles, that people bought with credit. Firms – like Ford Motors – saw demand decline, so they slowed production and furloughed workers. Unemployment rose, and the contraction that had begun in the summer of 1929 deepened (Romer 1990; Calomiris 1993).7
Before the crash, which wiped out both corporate and individual wealth, the stock market peaked on Sept. 3, 1929, with the Dow at 381.17. The ultimate bottom was reached on July 8, 1932, where the Dow stood at 41.22. From peak to trough, the Dow experienced a staggering loss of 89.2%
Between 1929 and 1933, real gross domestic product per capita plummeted by nearly 30% and the unemployment rate soared from about 3% to over 25%. The consumer price index (CPI) plunged by nearly 25%, with the rate of deflation exceeding 10% in 1932
💵U.S.Dollar Currency💵 Index Analyze (DXY,02/23/2023)!!!It seems that The DXY index is making a leading diagonal.
The end of wave 5 can end at TRZ(Time Reversal Zone) & PRZ(Price Reversal Zone).
I expect that the DXY index has started the first impulsive wave.
U.S.Dollar Currency Index ( DXY ) Analyze, 4h-Time frame (Log Scale)⏰.
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy, this is just my idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
DOW JONES: November Support and bottom of 4month Channel hit.Dow Jones is officially oversold on the 1D time frame (RSI = 29.490, MACD = -335.510, ADX = 43.978) with the RSI being that low for the first time since September 30th 2022. By hitting also the S1 Zone and the bottom of the Channel Down, it becomes a buy opportunity for us, TP = 33,450 (P1).
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Getting close to another support level on $DJI, SCALPING onlyAs stated many times, in & out. Get as much as you can and then WAIT, be PATIENT IF you want to hold longer. It could be a while before we get another good longer term buy opportunity.
As stated before, SCALPING quick moves.
Most of these were not huge moves BUT Put premiums did lessen & provided 10-25% in minutes.
$MSFT went from 249 - 252
$ZS 106 - 108.5
$TSLA 170 -177
$COIN 53-55.2
$RUN 21.9 - 22.95
Picked up some gold miners $BTG $KGC Possible consolidation in the industry.
SPX | Early AccessI have posted about this chart before, but I wanted to show it more clearly this time.
Above we see SPX, the standard chart. Below we see a custom index I invented, which is VVIX/VIX. It is a neat way to make sense of the chaotic nature of VIX. To clear things out, I have hidden both charts and instead I show an indicator called WLSMA. It is tremendously helpful to smoothen the "fog" the standard chart creates. In the end I will add the link to the inventor.
I took great care on drawing these trendlines. I tried to get into the mind of the investor back then, and drew the lines that best made sense, and could provide some actual meaning.
On the chart, red arrows are drawn. These are the times when the VVIX/VIX chart violates decisively it's trendline. On the same dates, I created arrows on the SPX chart to get an idea of just how early this method warns us. While this method may not be useful for traders (I am not a trader, I am just passionate analyzing charts), I find it incredibly interesting on how these two correlate, and make actual sense.
I find VIX by itself completely useless. Don't get triggered by what I said.
How on earth is VIX = 20 a good buy-in strategy? It is as about as useful as RSI getting below 80. Again don't get triggered by it and flame comments down below. Numbers and money don't mean nothing. It is perspective and values that make sense.
Now onto some charts:
In 2008 we were notified from VVIX/VIX all the way back in February of 2007, and got a confirmation on April of 2007. This is not a typo, 1 year before the GFC.
Curiously, this happened when FED's tightening schedule was near it's end.
Also interesting is the April-September period of 2008, when the VVIX/VIX chart showed signs of hope when it broke above it's trendline.
And compared to now:
We can conclude similarly for the 2010-2015 period.
And the 2016-2020 period.
And the 2020-2023 period of course.
Are we approaching this hopeful period before the crisis?
A comparison between 2008 and 2023, in the period of deadly hope.
Link to the inventor of the WLSMA indicator:
Tread lightly, for this is hallowed ground.
-Father Grigori
Highest $VIX has been in a long time, Stocks prepping for run?$VIX pumped hard these last 2 days
Was interesting that it hadn't done much considering how much the #markets had fallen.
However, it could be short term topping out as #stocks are oversold atm.
25 has been an issue for some time now.
Other data is showing that we are likely setting up for a nice run.
$DJI bouncing off Support levelEarly this open
RSI looks ok & is oversold. Not buy much but it's been a good amount of selling
Took advantage of this dib & went on buying spree. As we've been saying for some time, IN & OUT, scalps & short term trades.
We've also been SELLING PUTS to help reduce risk by bringing premium in. If the premium subsides a good amount we cover.
Not looking for home runs.
We should have an okay day today but a lot of damage has been done to #stocks.
$MSFT $TSLA $ZS $UDOW $TQQQ $RUN
Beginning to nibble on #GOLD miners $BTG $KGC $FNV doing well today
DOW JONES Any doubt we are completely off Bear limits anymore?This Dow Jones (DJI) from the start of the 2022 Bear Cycle until today with the 2007 - 2009 (Housing Crisis) Bear Cycle fractal plotted on it. As you see up until the mid October bottom, the two sequences practically traded in an identical way. Since then however, Dow has completely diverged from the 07/09 fractal and despite the late weakness, it is hard to claim that we are still in Bear Cycle territory.
Is there any doubt we are off Bear limits anymore?
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$DJI dip bought yesterday paying off, $NDX #stocks BOUNCINGYesterday pointed out that we were using cash on that dip
We had sold decent amount couple days before from the longs of last week.
Bought (Sold puts) $MSFT $UDOW $TQQQ $RUN $ZS and others
With rates increasing & #FED staying hawkish how are we not going lower?
Maybe not here but we've stated before MANY times that #markets don't work, especially now, the way most think.
It's psychology & BIG MONEY moves how they see it.
$DJI can very well stay RANGEBOUND for a bit. Stayed this way for 2 weeks in December.
The indices are "easier" to track so find your fav company and use indices to trade around it.
SPX | A Trader's MindThe anxious moment when your investment goes through a period of slowdown or drop.
When everything is good, everyone is happy. Nobody thinks twice when a market is growing.
It's at that point of the first lower-low, when an investor loses their sleep. And it can be suffering when insomnia is prolonged.
The 2022 Recession will be remembered as the most confusing and pressured of all. One whole year later, and still we don't sleep all that well. We hoped that things would clear out by now. Instead, the situation is more confusing and chaotic than ever!
Being in a period of all-time-high records, I feel proud. Yet, the responsibility in my work is most important than ever.
And there are many records occurring right now...
For the first time, Money Supply has taken such a dramatic downturn, with an incredibly steep yield-curve inversion.
With 470B burned until now (M2SL chart) and with such a prolonged inversion, it seems that a new era begins right before our eyes. A period when money is scarcer and scarcer.
We were crying all these years that money loses it's value. Now that money is getting much more powerful, we are still crying.
This kind of mentality doesn't help us. It can certainly get us pretty far, but in the wrong direction. We should dedicate our thoughts and efforts into deciphering this incredible new era. I am not optimistic for this new era for many reasons, an explanation of these reasons is not fitting in a trading platform. We are facing serious humanitarian problems that we choose to avoid, or problems that we create (un)willingly.
To figure out what happens, we should begin thinking spherically. Isolating equities doesn't get us far. It is the balance of powers that is changing in an instant.
-- Tricky Bear Market Trendlines
Bear market analysis is not as simple as many expect. The bottom is not that easy to pinpoint. There are many bottoms that precede the terminal bottom. In each one, everyone trades as if the bottom is in. Most of these times, the bottom is not in...
I've seen innumerable charts this past year, claiming that the bottom is in and that we should trade it. Yet, none of them ended up true
Breakout, divergence, MA crossover, over and over and over again...
The same mentality occurred in previous recessions...
After these instances, more downside followed. Are we sure we are out of the woods?
-- Hollow Equities
The Stock Market is not what it used to be. The major indices are not priced just by stocks, but from derivatives also. The following chart attempts at calculating the percentage quantity of derivatives. The higher it gets, the more "hollow" prices get.
More info in the following idea:
How much should we trust index prices given that they are filled with weapons of mass destruction?
-- Cash instead of Stocks
From 1920 to 2020, Equities were the go-to investment. Currency was just the mechanism to buy into equities.
Now a paradigm change is beginning. Progressively higher yields and steady equities shape an entirely new understanding of what investment is. From investment in equities, to investing in money itself.
A horizontal movement is expected for DJI against yields. Equities can increase as much as yields allow them to. Not the other way around.
Until now, equities dictated yields. If equities stagnated, yields had to drop to stimulate the economy. Now, equities may increase only when yields allow them to. The FED is showing that rates will not lower even if this ends up in severe financial crises. Money has to remain strong for those who have it. In periods of war, financial advantage is more important than growth.
Surviving against the enemy is a priority. Talking about a paradigm shift!
-- Commodity Inflation
Commodity inflation is brewing. Now it is beyond brewing, it is getting explosive...
Inflation is getting so severe, that it is bull-flagging against money supply itself! At least according to my charts...
And if Bitcoin can be considered a commodity, it is showing the same dynamics as material commodities do. And in an even higher degree!
To NDQ Bulls, the big-tech bubble appears to have already ended!
Perhaps we have not seen just yet the dynamics Bitcoin can get. It is proving an investment that is progressively accumulating incredible amounts of idle wealth. High amounts of money are "parked" in Bitcoin, sitting idle.
This chart is very simplistic. One more experienced with Bitcoin analysis can make a more thorough analysis. If one of you does, please inform me because it is very interesting for me!
There is much more occuring. Housing is one important market, on which I am not experienced to analyze.
As a conclusion, I advise every TradingView user to concentrate their efforts into deciphering the future. In this new era of progressively stronger currency, equities and investments will not perform like they did the past 40 years of QE. There is much work to do for us to financially survive in this environment.
PS. To get something out of the way, I don't give trading advice. My charts are drawn with arrows so as to explain more easily my thought process. I post these ideas to provoke conversation and logical analysis. I can always be wrong in my thought process. If you disagree with a chart, please disprove it with a chart. Not with texts of semi-logical reasoning and by calling me crazy or conspiracy theorist.
Of course any comments and corrections are welcome! It is when you want to disprove something that requires you to send counter-evidence.
Tread lightly, for this is hallowed ground.
-Father Grigori
DOW JONES The opportunity to buy again is NOWWe have been following this Triangle pattern on Dow Jones (DJI) trading within what we called the 'High Volatility region' since last year, with are last buy signal given 1 week ago:
The 33400 target was reached and yesterday's rejection on the 4H MA200 (orange trend-line) is providing us with a new opportunity to buy. We have a confirmed Triple Bottom ranging from November 09 2022 and today's low makes a Higher Lows sequence similar to what followed after the December 20 2022 Low on the 32480 Support. Even the 4H CCI is on the exact same levels as December.
Target 1 is again 33400 and Target 2 is 34350 assuming the index breaks and closes a 1D candle above the Pivot Zone and then re-tests it successfully as a Support.
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DJI Possible Drop Incoming for 2023Good morning, Traders. Right now, weekly timeframe looking like some minor up movement is still possible, but don't let that move fool you. Monthly timeframe printed a HUGE bullish engulfing candle, if that level is broken, I am expecting DJI to drop down to the 28k level.
Projecting the first half of the 2023 will not be great for the stock market maybe the entire 2023. Only time will tell...
Well, that's it for today, Happy holidays everyone and have a great rest of the years! Happy Trading!