Market
EURUSD(liquidity proxy)if BO parity, $ falls, gold,equity rallyEURUSD may be used as a liquidity proxy. It has been falling for a long time in a big down channel &
Is now bouncing right at the dotted median line. (4Q is historically bullish going into new year specially on
midterm election years, where markets bottom in late October)
Watch closely if EURUSD will break above parity 1:1 again in a big move. Then most probably that is where
the 4Q rally shall start extending to 1Q2023. I still believe there is still a wave 5 down for the C wave of the big ABC correction from ATH. In 2Q2023, ABC may end in a double bottom near the dotted median or even much lower to the lower channel in case of a recession, which is more probable in Europe than in the US.
After ABC completes sometime before end of recession. Equities will rally to the start of a new EW cycle.
Not trading advice
Bitcoin Bullish or BearishMany people want to trade BTC, claiming that it's headed to 10k or that a relief rally to 30k will come. There is no edge, no implied strength, and even not that much weakness, a trade in either direction with a stop loss will probably get wiped out.
However, if one was to look at the chart there are a few things that are evident:
- Bullish divergence developing after a failed breakdown and bearish divergence that played out in a very weak manner.
- Three consecutive marginal lower lows holding support again implying accumulation and seller exhaustion.
- And lastly the breaking of a downward-sloping trendline that has acted as resistance on 5 different occasions.
During a normal market, I would be longing and would be extremely bullish. However, this is not a normal market and during a bear market, the chances of this playing out are extremely low. The next few days will be to see if the trendline break is key.
Stay posted as I WILL UPDATE AND TAKE A TRADE IN THE NEXT FEW DAYS.
Alt Market Cap Not Looking HealthyAlt Market Cap Not Looking Healthy
The Alt Market cap has recently broken down on market structure and retested key resistance and 200EMA 1hr. Core issue is the consolidation directly below key resistance at 356 which is looking like a dump could be incoming to me to the next supprot level at 342. It could be a little rocky for alts in the short term.
The Crash of 2022Correlations between all sectors of the market have moved increasingly to one throughout the year. The correlations have become even tighter since Jerome Powell's Jackson Hole speech.
Stocks and Bonds continue falling even though they are very oversold. Crashes happen in oversold markets.
Worsening liquidity problems in markets, rising interest rates, and bonds falling in tandem with stocks around the world are likely to ignite a financial crisis.
Money supply growth has stagnated since the beginning of the year. Money supply growth began stagnating early in the year in 1929 as well. The government began tightening spending on New Deal programs in 1936 before the crash happened in 1937.
Earnings contractions YoY in Q3 won't justify the current level of valuations and future earnings expectations. Many analysts are still expecting earnings growth in 2023. These forecasts will have to be adjusted to match reality, which will be another negative hit to investor sentiment.
The economic contraction continues to worsen, with mounting job layoffs being announced, falling capex spending, and worsening sentiment among management teams and investors alike.
The current market setup looks very similar to 1929, 1937, 1987, and 2008. All of which topped between Mid August - Early September before crashes of over -30%. All of these crashes took place over the span of less than 3 months, with the majority of the decline occurring over a period of 2-3 weeks. (I'm referring to length of the crash phase and not to the entirety of the bear market)
IN SUMMARY: The current level of overvaluation, rising interest rates, a worsening recession, and stubbornly high price inflation are a toxic mix. I think the market is in for the largest crash since The Great Depression.
Good Luck to Everyone
- Alexander
BTC Detailed Top-Down Analysis - Day 84Hello TradingView Family / Fellow Traders. This is Richard Nasr, as known as theSignalyst.
84 out of 500 days done.
I truly appreciate your continuous support everyone!
Let me know if you like the series, and if you would like me to change or add anything.
Always follow your trading plan regarding entry, risk management, and trade management.
Good Luck!.
All Strategies Are Good; If Managed Properly!
~Rich
Possible S&P500 bottom, and wealth redistributionTechnical:
S&p500 holding critical support (yellow ema), a possible bottom will be 503EMA or circle marked in the chart, if Williams AO does its crossover, prepare for vacation.
Fundamental:
Rate hikes are the least of the worries, everything seems bearish. The only hints of hope are the US unemployment rate below 4% (somehow low), and the Ukraine war. NATO and US were in decadence before it and Putin fell in their trap invading an useless country geopolitically speaking. Us is redefining it's status quo by making another war, but this time they're not fighting it directly, will be that cheaper or expensive?
Opinion:
Every TV clown educator has been posting their bearish bias and i won't be the exception, everybody is right when markets are trending (bullish or bearish), the only thing they don't know it's where the bottom (or top) is, they will keep selling useless trading signals, but the thing is there won't be business anymore, the golden era of scamming people is over, at least for now and for the next years, even brokers (market makers) are facing financial issues and we'll see bankruptcy so it would be a great idea cashing out your assets if you don't want to lose it all. It will be a great depression tier freefall, a chud's and a poljack wet dream. But it won't be like that neither. The water they're storing will end mouldy, the ammo dusty they will use just one bullet ;) and the shinny rocks seized or buried somewhere in the dirt. An anarchist dystopia is unrealistic in a country like the US or any west one, worse things happens in third world countries on a daily basis and even so, people manage it to live their lives almost on a normal way but they're too dumb to realize, they are so used to their consumist way of living they think the world ends when they won't find their favorite snacks on a Wal-Mart or any supermarket. Will be a hard time for US citizens, but what's surprising me is how people are realizing now we are in a recession we were already years ago, the signals were pretty obvious: inflation, expensive housing, lots of homeless in top tier cities, r****ds and illiterate people making millions (WSB, Crypto, meme stocks). Will be a healthy recession and a healthy wealth redistribution to the smart hands.
Dogecoin WOW TODAYThe current dogecoin price analysis is bearish.
At $0.0652, there is the most resistance.
The price of $0.0588 has the most robust support.
Dogecoin price data for October 11, 2022, reveals that the joke cryptocurrency has been moving steadily over the previous 48 hours. On October 10, 2022, the price jumped from $0.0581 to $0.0606. Today, Dogecoin saw a negative movement and a substantial price drop. The coin is now rising and is trading at $0.0594 as of this writing.
Dogecoin is presently ranked #10 with a 24-hour loss of 1.98%, a trading volume of $302,586,207, and a live market cap of $7,962,066,968. The cryptocurrency, however, has the possibility for a turnaround as the most recent price study shows the cost of DOGE is BULLISH
Dogecoin price analysis reveals the cryptocurrency following a constant movement, showing potential towards either extreme. However, the market shows colossal potential for a reversal in the coming days. If the bulls manage to use it to their advantage, they might engulf the market and help raise the price of Dogecoin beyond expectations.
Disclaimer. The information provided is not trading advice. I hold no liability for any investments made based on the information provided on this page. I strongly recommend independent research and consultation with a qualified professional before making investment decisions.
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Market almost 60% share shows SELL signal be ready in some day we will seen one of the most dramatically fall in the stock market place sl on your position of hedge with future and option if your share in cash than buy index put of next week expiry or monthly expiry we will seen intraday 3 or 4% fall in nifty of banknifty i check stocks chart position that i can't get on nifty and banknifty but according to stock position all show big fall //// that is my personal view may be i am wrong but i take safe path. happy investment and safe trading.
Edge of a Precipice Will we ever see VIX at 16 again?
Here I explain the mean reverting nature of VIX.
Then I predicted exactly were VIX and JHEQX would be on Friday, October 7th.
Now we're sitting at the edge of a precipice of the worst financial disaster in history.
So I wrote an indicator to give us retail traders an inside eye so maybe we could catch a long vol opportunity of a lifetime.
If you understand how a large institution positions assets and how they hedge against a market correction you can a) find these hedges and b) use dealer positioning to predict it.
That brings us back to VIX.
Vix is calculated using SPX Weekly options rather than stocks.
If Vix sustains higher levels for longer it is telling us liquidity is bad.
As more institutional players position to the downside eventually there will be too much money on the same side of the boat and the boat will flip.
Think of market participants as people on a boat and the waves are volatility.
As the seas get more violent (swings up and down in market price) people on the boat are going to try to find a position best suited for the volatility.
Ask yourself now, is buying puts a good way to hedge downside?
No.
Fixed strike implied volatility is a disaster.
It has been collapsing for nearly the entire year.
Institutions protecting assets (like British pension fund managers apparently) with puts are getting worse and worse returns hedging with puts.
You may be able to pick off edge as an active trader by buying well timed Puts and cashing in on premium kick for a quick 100% return, but these fund managers holding puts are getting destroyed.
Instead, institutions are piling into selling puts while shorting stocks.
We all know what happens when too many shorts pile in, they frequently get squeezed.
I was expecting short squeezes to take hold when Oil started climbing.
Because the alternative is JHEQX leaning negative into an already crowded short side and a VIX > 32.
And that is exactly what nearly happened on Friday.
If futures drop overnight or price drops below 3580 JHEQX will start selling and the only thing stopping a drop to 3200 will be the FED with its left tail tucked between their legs with some fresh QE.
As a great philosopher once said.
"Dread it. Run from it. Destiny arrives all the same. And now it's here"