Reasons and Effects of RecessionHi everyone,
Today, I am here with informative content. Let me start by saying that it will be a bit long, but let's learn what "Recession" means in detail.
🚩Recession can be defined as an economic downturn period. It is generally characterized by a decline in the gross domestic product (GDP) of a country in one or more quarters. Recession is associated with a series of economic indicators, such as rising unemployment rates, a decrease in consumer spending, and a general slowdown in economic activity.
🚩Recessions usually occur as part of the economic cycle and move with periods of economic growth. Some recessions may be shorter and less severe, while others may be longer and more severe. Recessions are generally attempted to be alleviated through economic incentives such as monetary policy, tax cuts, or increases in government spending.
🚩During a period when the economy slows down in general, financial markets are also affected. Recessions affect the prices of assets such as stocks, bonds, and commodities. Below are some examples of how recessions affect money markets:
🏳️Stocks: Stock prices usually decline during recession periods. Since the profitability of businesses decreases, investors tend to sell stocks as they expect a decrease in the company's future earnings potential. Therefore, during recession periods, there are often declines in stock markets.
🏳️Bonds: During recession periods, bonds usually have more demand. This may be due to investors turning to a safer investment. Bond interest rates may decline, and some investors may turn to safer but lower-yielding bonds from higher-risk assets.
🏳️Gold and other commodities: Gold and other commodities usually have demand during recession periods. This may be due to investors looking for a safer haven. Gold is a widely used "safe haven" asset worldwide, and its price usually rises during recession periods.
🏳️Currencies: Exchange rates between currencies can also change during recession periods. For example, currencies of countries with slowing economies usually decline, while currencies of countries with stronger economies usually become more valuable.
🚩The 2008 global financial crisis was triggered by a collapse that began in the US mortgage market. This collapse started when mortgage lenders turned high-risk mortgage loans into high-risk debts by commercializing them. Mortgage debts were then packaged with various debt instruments and sold in financial markets by investment banks. The collapse of debt instruments resulted in unpaid mortgage debts, a decline in house prices, and more homeowners facing financial difficulties. This situation turned into a mortgage crisis that began in 2007 and lasted until the middle of 2008.
🚩FED made several statements in the early 2008 indicating that there was a "mild recession" in the US economy. However, the FED failed to take necessary precautions for the collapse of the mortgage market to turn into a crisis.
One reason why FED could not take necessary precautions for the collapse of the mortgage market to turn into a crisis was due to the loose regulations of financial institutions in the US and permission to finance risky debts with high leverage. Therefore, the statements made by FED in early 2008 could have been made to maintain market confidence.
🚩However, towards the end of 2008, the mortgage crisis deepened and turned into a global financial crisis, which resulted in many financial institutions going bankrupt, unemployment rates rising, and a significant decline in the world economy.
As a result, the statements made by FED in 2008 were based on the assumption that the mortgage crisis would result in a less severe recession. However, this assumption did not come true, and the mortgage crisis turned into a global financial crisis. These events have shown that regulatory institutions need to closely monitor risks in financial markets and complexity in debt instruments.
Similarities and Differences:
🚩We can say the following about the similarities and differences between the 2008 global financial crisis and a potential crisis:
Similarities:
• Both the 2008 crisis and a potential crisis could begin with a collapse in financial markets.
• Both crises can affect many economic sectors and countries.
• Crises usually cause a decline in economic activity and a rise in unemployment rates.
• Both crises may require central banks to intervene through monetary policies by lowering interest rates.
Differences:
• The 2008 crisis began with the collapse of high-risk loans in the mortgage market. The start of a potential crisis may depend on a different cause or event.
• The 2008 crisis resulted in the bankruptcy of many financial institutions. In a potential crisis, the situation of financial institutions or the structure of financial instruments may be different.
• The 2008 crisis turned into a global financial crisis. The magnitude of a potential crisis will depend on how widespread the crisis is, which sectors are affected, and whether the crisis has a global impact.
• In a potential crisis, countries' economic structures and policies before the crisis may have a different impact on the severity and duration of the crisis.
🚩In conclusion, any economic crisis cannot be predicted in advance, and we cannot know its definite results beforehand. However, by looking at the causes and consequences of past crises, we can say that uncertainty and fluctuations in financial markets and economic activity are significant during crisis periods.
Possible Impact on Cryptocurrencies:
🚩Predicting the impact of a potential recession on cryptocurrency assets and Bitcoin is a difficult issue. However, in case of uncertainty in financial markets and investors avoiding risky assets, it is possible for cryptocurrencies to lose value. On the other hand, Bitcoin and other cryptocurrencies may act as a safe haven asset, especially in times of economic turmoil, and may increase in value.
Differences Between Technical Recession and Real Recession
🚩Technical recession is a situation where the economy has a declining growth rate for a certain period (usually a quarter or more). In this case, a country's economy shows a decline for two consecutive quarters. Technical recession is generally considered an indicator of an economic downturn period.
🚩Real recession, on the other hand, is an economic downturn period where economic indicators such as rising unemployment rates and decreasing consumer spending sharply decrease. One of the most important determinants of a real recession is the unemployment rate in an economy. When unemployment rates rise in an economy, the purchasing power of the unemployed people decreases, and as a result, consumer spending declines.
🚩The difference between the two terms is that technical recession only refers to a two-quarter economic downturn period, while real recession refers to more extended, usually more severe, and more serious economic problems such as an increase in unemployment.
Let's Take a Look at the 2001 and 2008 Crises
🚩In the past, the US economy entered a technical recession several times, but also experienced real recessions. For example, in 2001, the US economy shrank for two quarters, and technically, a recession occurred. However, the main reason for this economic downturn was the burst of the high-tech bubble. Therefore, the contraction in the economy was only caused by a temporary factor, and there was no significant change in other economic indicators.
🚩However, after the 2008 financial crisis, the US economy went through a more severe recession. This crisis was caused by subprime mortgages and other risky financial instruments. The crisis led to significant losses in financial markets and the bankruptcy of major banks. As a result, economic growth slowed down, unemployment rates increased, and consumer spending declined. This situation was evaluated as a real recession, and the US economy struggled to recover for a long time.
🚩The Fed has taken various steps to address technical and real recessions in the US economy by regulating interest rates and using monetary policy tools. For example, after the 2008 financial crisis, the Fed reduced interest rates to zero and tried to support financial markets using monetary policy tools. These steps helped the economy to recover, and the US economy started to grow again.
If you've read this far, you probably liked this content. Don't forget to use the like button, and if you feel like it, you can even leave a comment. Moreover, sharing knowledge is powerful, so you can share this content with your friends who you want to strengthen.
Goodbye. 👋🏻👋🏻👋🏻
Educationalposts
Patience in Trading Hello traders,
Patience in trading is ability to wait to take the right action, if you have not enough patience you will have bad trades bad decisions and cause you to take action too soon.
3 things you should avoid if you want to become a better trader and improve your patience in trading.
1) Don't Rush :
Market is there not going anywhere so don't need to rush in bad trades stick to your best trade setups and always looking for an opportunity don't rush into normal trades.
So don't need to rush just relax and take things step by step, enjoy the journey of your trading.
''If you need to hurry, you are already too late''
2) Over Confident :
Over confident is a very worse thing especially in trading when someone overestimates their own skill and knowledge which can lead to them making mistakes.
There are some types of over confident like wishful thinking, over ranking, and illusion of control etc...
These all of types over confident can lead to big losses in trading.
Some of things that you can do to overcome your over confidence in trading is :
> Don't believe too much in your skills
> Always use stop loss
> Don't thinking just only for today
> Create your trading rules and don't break stick to it
> Always stay in the middle line don't go to the extreme which cause you over confident and don't go to the slight which cause you depression.
''We can never reach a stage where we can say, i know everything and i have nothing more left to learn''
3) Believe :
Believe in yourself if you don't have enough believe in your trading system or any kind of decisions you take in trading you can lead to big losses like comes in fear and try to close running trades and don't have enough believe in your taken trades.
Try to believe in yourself, try to believe in your decisions, try to believe in your trading system and be patient with your taken steps and wait for the outcome either it will bad or good doesn't matter just continue the process and learn from your previous mistakes and be better next time.
''Trust yourself, you know more than you think you do''
These are 3 things that you should need to do for patience in trading.
If you have any advice to be patient in trading please let me know in the comments.
I wish you good luck and good trading.
If you like the post, please support my work with like, thank you!
DLF- WEEKLY TIMEFRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart).
Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves.
we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle.
Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price.
Keep it simple, keep it Unique.
please keep your comments useful & respectful.
Thanks for your support....
Tradelikemee Academy
Factor Investing: An IntroductionThe concept of factor investing has garnered significant attention in recent years as an innovative approach to portfolio management. The idea behind factor investing is that it seeks to uncover the primary sources of return in investment portfolios, and to explicitly target these sources, known as factors. By systematically identifying and targeting these factors, investors can achieve improved portfolio diversification, risk management, and potentially, enhanced returns.
Factor investing can be traced back to the Capital Asset Pricing Model (CAPM) introduced by Sharpe (1964) and Lintner (1965). The CAPM was a groundbreaking theory that posited that a security's expected return is directly related to its level of systematic risk, measured by the beta coefficient. The concept of beta provided an early example of a factor in investing.
In recent years, factor investing has evolved and expanded considerably. Researchers and investment managers have identified numerous factors that drive investment performance, such as quality, low volatility, and liquidity.
Primary Factors in Investing
Market : The market factor represents the overall market return and is the core factor that drives investment performance. The market factor, or beta, is the exposure of an asset to the general movement of the market.
Size : Size is the factor that focuses on the market capitalization of companies. Small-cap stocks typically offer higher potential returns than large-cap stocks, although they also tend to exhibit higher volatility.
Value : Value investing targets stocks that are considered undervalued relative to their intrinsic value. Value stocks generally have low price-to-earnings, price-to-book, and price-to-cash-flow ratios, and they tend to outperform growth stocks over time.
Momentum : The momentum factor captures the tendency of stocks that have recently outperformed to continue to do so. Momentum investing strategies aim to capture this trend by buying recent winners and selling recent losers.
Quality : Quality is a factor that focuses on financially stable and well-managed companies. Quality stocks typically have high profitability, low leverage, and stable earnings growth.
Low Volatility : Low volatility investing aims to identify stocks that have exhibited low price volatility over time. Low-volatility stocks often deliver better risk-adjusted returns than high-volatility stocks
Benefits of Factor Investing
Factor investing offers several benefits to investors, such as:
Improved diversification : By targeting specific factors, investors can diversify their portfolios across various sources of return and risk, thereby reducing overall portfolio risk.
Enhanced risk management : Factor investing enables investors to better understand the underlying risks in their portfolios and to manage those risks more effectively.
Potential for outperformance : By systematically targeting well-established and robust factors, investors may achieve higher returns than traditional market-cap-weighted indexes.
Cost efficiency : Factor investing strategies are often implemented using rules-based approaches, such as smart-beta or quantitative strategies, which can be more cost-effective than traditional active management.
Transparency : Factor investing strategies are typically more transparent than traditional active management, as they rely on well-defined, rules-based methodologies that are easier for investors to understand and monitor.
Potential Risks of Factor Investing
While factor investing offers many benefits, it is important to be aware of the potential risks associated with this approach:
Factor timing : Just like market timing, attempting to time factor exposures can be difficult and often leads to underperformance. Investors should be cautious about trying to predict when a particular factor will outperform or underperform.
Overfitting : The process of identifying factors can be susceptible to overfitting, where a model is tailored too closely to historical data and may not perform well in the future.
Crowding : As more investors adopt factor investing strategies, the potential for crowding in certain factors may increase, leading to diminishing returns or increased risk.
Model risk : The effectiveness of factor investing strategies relies on the accuracy and stability of the underlying factor models. If the models are not robust or if they become less effective over time, the strategy's performance may suffer.
Diversification risk : While targeting specific factors can help diversify a portfolio, it may also expose investors to concentrated risk if those factors underperform or experience periods of heightened volatility.
Factor investing has revolutionized the way investors approach portfolio management, offering improved diversification, enhanced risk management, and the potential for outperformance. By identifying and targeting the primary drivers of investment performance, factor investing provides a systematic and transparent framework for constructing and managing portfolios.
Trade with care.
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Fibonacci Levels and How They Can Be Used in TradingGreetings, @TradingView community! This is @Vestinda, bringing you a helpful article on the topic of Fibonacci Retracements and how to effectively utilize them in your trading strategies.
Fibonacci retracement levels are helpful for traders and investors in financial markets. They're horizontal lines on price charts that can show where price may reverse direction.
These levels are based on the Fibonacci sequence, which is a series of numbers that occur in math and finance.
Use case:
The first thing to understand about the Fibonacci tool is that it is most effective when the market is trending.
In an upward trending market, traders commonly use the Fibonacci retracement tool to identify potential buying opportunities on retracements to key support levels. Conversely, in a downward trending market, traders may look for opportunities to short sell when the price retraces to a Fibonacci resistance level.
Fibonacci retracement levels are regarded as a predictive technical indicator because they attempt to forecast where the price will be in the future.
Based on the theory, when trend direction is established, the price tends to partially return or retrace to a previous price level before continuing to move in the direction of the trend.
How to Find Fibonacci Retracement Levels:
Fibonacci retracement levels can be found by identifying the key Swing High and Swing Low points of an asset's price movement. Once these points are established, you can use the Fibonacci retracement tool, which calculates the potential levels of support and resistance based on the ratios between the key points.
To apply the Fibonacci retracement tool, click and drag from the Swing Low to the Swing High in a downtrend, or from the Swing High to the Swing Low in an uptrend. This generates a set of horizontal lines at predetermined Fibonacci ratios, including 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
Are you keeping up with me? ;)
Now, let's explore some examples of how Fibonacci retracement levels can be applied in cryptocurrency trading
The Uptrend:
In this instance, the Fibonacci retracement levels were plotted by selecting the Swing Low and Swing High points, which were observed on January 8th, 2021 at a price of $41,904.
The Fibonacci retracement levels were $33,521 (23.6%), $29,197 (38.2%), $26,114 (50.0%*), $23,356 (61.8%), and $19,925 (76.4%), as shown in the chart.
Traders anticipating that if BTC/USD retraces from its recent high and it will likely find support at a Fibonacci retracement level. This is due to the tendency of traders to place buy orders at these levels as the price drops, creating a potential influx of buying pressure that can drive up prices.
While the 50.0% ratio is not officially recognized as a Fibonacci ratio, it has nonetheless become widely used and has persisted over time.
Now, let’s look at what happened after the Swing High occurred.
Price bounced through the 23.6% level and continued to fall over the next few weeks.
Two times tested 38.2% but was unable to fall below it.
Subsequently, around January 28th, 2021, the market continued its upward trend and surpassed the previous swing high.
Entering a long position at the 38.2% Fibonacci level would have likely resulted in a profitable trade over the long run.
The Downtrend
Next, we will explore the application of the Fibonacci retracement tool in a downtrend scenario. Here is a 4-hour chart depicting the price action of ETH/USD.
As you can see, we found our Swing High at $289 on 14 February 2020 and our Swing Low at $209 later on 27 February 2020
The retracement levels are $225 (23.6%), $236 (38.2%), $245 (50.0%), $255 (61.8%) and $269 (76.4%).
In a downtrend, a retracement from a low could face resistance at a Fibonacci level due to selling pressure from traders who want to sell at better prices. Technical traders often use Fibonacci levels to identify areas of potential price resistance and adjust their trading strategies accordingly.
Let’s take a look at what happened next.
The market did make an attempt to rise, but it briefly halted below the 38.2% level before reaching the 50.0% barrier.
The placement of orders at the 38.2% or 50.0% levels would have resulted in a profitable trade outcome.
In these two instances, we can observe that price positioned itself at a Fibonacci retracement level to find some temporary support or resistance.
These levels develop into self-fulfilling support and resistance levels as a result of all the people who utilize the Fibonacci tool.
All those pending orders could affect the market price if enough market participants anticipate a retracement to take place close to a Fibonacci retracement level and are prepared to enter a position when the price hits that level.
In conclusion:
It's important to note that pricing doesn't always follow an upward trajectory from Fibonacci retracement levels. Instead, these levels should be approached as potential areas for further research and analysis.
If trading were as simple as placing orders at Fibonacci retracement levels, markets wouldn't be so volatile.
However, as we all know, trading is a complex and dynamic process that requires a combination of knowledge, skill, and experience to succeed.
We are truly grateful for your attention and time in reading this post. If you found it insightful and beneficial, we would be thrilled if you could show your support by clicking the <> button and subscribing to our page.
We are excited to share that our upcoming post will showcase what occurs when Fibonacci retracement levels do not perform as expected. Stay tuned for an informative and professional read.
Navigating the Uncertainties of Fibonacci Retracements in CryptoHello, @TradingView community! I'm @Vestinda, and I'm thrilled to share an informative article with you today about Fibonacci Retracements.
While they can be useful tools for traders and investors in financial markets, it's important to note that they are not infallible and may not always produce the desired outcomes.
As discussed in our previous post, Fibonacci support and resistance levels are not infallible and may occasionally break. It is essential to remain vigilant and use these levels in conjunction with other technical indicators and market analysis to make informed trading decisions.
While Fibonacci retracements can be a useful tool in technical analysis, it is crucial to exercise caution and not solely rely on them as the sole basis for trading decisions.
Unfortunately, Fibonacci retracements are not infallible and may not always work as expected.
Let us examine a scenario where the Fibonacci retracement tool proves to be ineffective in technical analysis.
To make a prudent trading decision amidst the ongoing downtrend of the pair, you make a strategic choice to leverage the Fibonacci retracement tool. With meticulous attention to detail, you designate the swing low at 3,882 and the swing high at 10,482 for precise determination of a Fibonacci retracement entry point.
The BTC/USD Daily chart is shown below.
Upon careful analysis, it is evident that the pair has rebounded from the 50.0% Fibonacci retracement level for multiple candles. As an astute trader, you recognize this crucial pattern and conclude that it is a viable opportunity to enter a short position.
You thoughtfully consider, "This particular Fibonacci retracement level is showing remarkable resilience. It is undoubtedly a lucrative moment to short it."
You may have been tempted to take a short position in anticipation of profiting from the downtrend of the pair, while simultaneously daydreaming of cruising down Rodeo Drive in a Maserati.
However, if you had placed an order at that level without proper risk management, your hopes of profit would have quickly dissipated as your account balance plummeted.
Observing the price action of BTC, let's examine what occurred next.
Indeed, the price action of BTC demonstrates that the market is constantly evolving, and traders must be prepared to adapt to these changes.
As shown in this specific case, the price not only climbed close to the Swing High level, but the Swing Low marked the bottom of the previous downtrend. This serves as a prime example of the significance of flexibility in the dynamic realm of cryptocurrency trading.
What can we learn from this?
In the world of cryptocurrency trading, Fibonacci retracement levels can be a useful tool to increase your chances of success. However, it's important to understand that they are not foolproof and may not always work as intended. It's possible that the price may reach levels of 50.0% or 61.8% before reversing, or that the market may surge past all Fibonacci levels.
Additionally, the choice of Swing Low and Swing High to use can also be a source of confusion for traders, as everyone has their own biases, chart preferences, and timeframes.
In uncertain market conditions, there is no one correct course of action, and utilizing the Fibonacci retracement tool can sometimes feel like a guessing game. To improve your chances of success, it's crucial to develop your skills and use Fibonacci retracements in conjunction with other tools in your trading toolkit.
Thank you for taking the time to read our post.
We sincerely appreciate your attention and hope that you found it informative and helpful. If you did, we kindly request that you show your support by clicking the "Boost" button and subscribing to our page. Your support helps us create more valuable content for our community.
6 month hold on $GTN with tight risk 80% upsideGTN has amazing fundamentals in Broadcasting sub industry compared to its peers, technically at the bottom of an expanding long term wedge, and we're going into political ad season and its market is in many swing states that will see high political ad spending; this has a tight risk stop loss at 18% and easy upside of 80%;
I will take a measured long position in this soon at 2%-4% of portfolio and hold for 6=12 months.
I do not have a position in this currently but will likely go long this week
Easy-to-Spot Bullish Forex PatternsHi Traders, Investors and Speculators 📈📉
Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫
For the biggest part, I prefer to trade reactive rather than predictive. Chart patterns really come in handy with this strategy. Here are my top easy to spot chart patterns, specifically focused on bullish chart patterns today. The green highlight dots are to help identify the margins of the pattern and the purple highlighted dot is where a long entry can be taken.
While you're here 👀 See this related idea on EURUSD from the monthly timeframe:
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CryptoCheck
The Ten Fundamental Objectives of the Federal ReserveIntroduction
The Federal Reserve System, often referred to as "the Fed," was established in 1913 in response to a series of banking panics. As the central banking institution of the United States, it plays a crucial role in maintaining the stability and integrity of the nation's monetary and financial systems. This essay explores the ten fundamental objectives of the Federal Reserve, which include maintaining price stability, promoting full employment, and ensuring a stable financial system, among others.
1. Price Stability
The primary objective of the Federal Reserve is to maintain price stability, which refers to a low and stable rate of inflation. By managing inflation, the Fed helps to preserve the purchasing power of money, ensuring that consumers and businesses can make informed decisions regarding spending, saving, and investment.
2. Maximum Sustainable Employment
Another key objective of the Federal Reserve is to promote maximum sustainable employment, also known as full employment. This means providing enough job opportunities for all individuals who are willing and able to work, while minimizing the rate of unemployment. By promoting full employment, the Fed contributes to overall economic growth and well-being.
3. Moderate Long-Term Interest Rates
The Federal Reserve aims to maintain moderate long-term interest rates, which are essential for economic growth and stability. By controlling short-term interest rates, the Fed can indirectly influence long-term rates, thereby encouraging borrowing, investment, and consumption.
4. Financial System Stability
One of the most critical objectives of the Federal Reserve is ensuring the stability of the financial system, which involves monitoring and regulating financial institutions, as well as identifying and addressing potential risks. By maintaining a stable financial system, the Fed helps to prevent crises and protect the economy from shocks.
5. Efficient Payment and Settlement System
The Federal Reserve is responsible for managing the nation's payment and settlement systems, which include check clearing, electronic funds transfers, and automated clearinghouse operations. By providing these services efficiently and securely, the Fed ensures that financial transactions occur smoothly, promoting confidence in the banking system.
6. Consumer Protection
Another important objective of the Federal Reserve is to protect consumers by enforcing federal consumer protection laws and regulations. This includes monitoring financial institutions for compliance, addressing consumer complaints, and providing education and resources to help consumers make informed financial decisions.
7. Supervision and Regulation
The Federal Reserve plays a vital role in supervising and regulating financial institutions to ensure their safety, soundness, and compliance with laws and regulations. This oversight helps to maintain a stable and resilient financial system, while also protecting consumers and investors.
8. Community Development
The Federal Reserve is committed to promoting community development by supporting initiatives that address issues such as affordable housing, small business development, and workforce development. This objective aims to foster economic growth and improve the quality of life in communities across the country.
9. Economic Research and Analysis
The Federal Reserve conducts extensive research and analysis to better understand the U.S. economy, as well as the global economy. This research informs the Fed's monetary policy decisions and helps it to fulfill its other objectives, such as promoting maximum employment and maintaining stable prices.
10. International Financial Cooperation
Finally, the Federal Reserve cooperates with other central banks and international financial institutions to promote global economic stability and financial system resilience. This collaboration allows the Fed to share information, resources, and expertise, ultimately benefiting the U.S. economy.
Conclusion
The Federal Reserve plays a pivotal role in the U.S. economy by pursuing ten fundamental objectives, which range from maintaining price stability to promoting international financial cooperation. By fulfilling these objectives, the Fed ensures the stability and growth of the U.S. economy, while also fostering a resilient and efficient global financial system.
Trade with care.
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Safe $ACM ShortACM is the most poorly positioned commercial construction company on the market on a financial and technical basis currently. We take advantage of a slow down in commercial building with commercial banking stress. ACM is only off 10% from highs currently only 6 weeks ago. ACM Book value is 4.52, 20% higher than its industry average. Profit margin is 7.81% for industry at 20.61%. 5 year declining revenue growth at -6% annum. Long term debt to equity is 110% to industry average of 80.5%.
I think this could easily drop 50% into a recession. I have profit take at 33% support with stop loss just over highs at 14% for a RR of 2.39.
I have a short position in ACM currently.