The target no one believes. (Recession)The target no one believes. (Recession)
-Dollar at massive support. Deflation = recession
-Oil at big ressistence.
-Banks cant keep risking printing money anymore, would risk hyperinflation
-Double tops with massive algo trasaction growing with big insider selling high staks.
-Summer is the slowest part of the investing period
-Momentum totaly useless
-Vix at history lows and making support.
-EURUSD and GBPUSD at massive resistence. Currencies getting too expensive.
-Gasoline prices too high to sustain profits in airline indutries.
-Unemployment still too high.
-More small companies are suffering, big index stocks overvalued.
Recession
Major Market Correction/Crash Imminent(Not financial Advice)
They say History repeats itself, but history rhymes throughout the times.
Last week NASDAQ seemed to perform relatively well in relation to the DOW JONES (DJI,US30). However there are signals of a correction or a potential crash.
FUNDAMENTALS
- Drastic increase of inflation , the highest since 2008 before the collapse. When the cost of goods/services rise, people will not have the money to invest.
-INSIDER TRADING, Directors, CEO's, Upper Level Management across the board have been selling their shares
From Amazon, Google, Microsoft, Walmart, Apple ect.
- Gold/Lumber Ratio has declined. When the prices of lumber rise it usually signals people moving into more risk-on assets. But as Lumber prices have started to significantly
decline it may signal the start of a potential downturn if Gold rallies higher.
-PE Ratios and other valuation methods are similar to levels of Dot Com.
TECHNICALS
DOW JONES and other Major Indices crossing over on the Weekly MACD
DOW JONES Dow theory can come into fruition
US 10 Year Treasury Bond
4hr MACD cross over
The Majority of the people in the markets do not make money over a long period of time. Where the masses come at the top of a market.
The majority/masses also do not understand "what is money?" and what is true genuine value. Where when the market crashes a lot will sell at a loss forcing prices to drive lower.
Are we entering recession phase now? Nasdaq is looking similar to other major indexes around the world and that is exhausted, the #crypto rally is also looking tired now. Maybe this is the time the bull run finally comes to the end.
Nasdaq made ATH near 14k just few weeks back, but that was an failed rally to get back in the ascending channel. If we were to continue this bull run it shall get back up and above 15k this time otherwise we will see it continue declining to near 12k as first stop and then after some battle maybe near 10k.
10k comes with a very strong support so we likely wont give up easy but remember that 20% off from ATH will be around 11500 so if we hit anywhere below 11500, the economy will be considered in recession.
Higher taxes, and not so strong job numbers, slow growth due to global hit of COVID will have a prolonged recession this time.
I wish this was not true, but sometime you do not choose your battle - the battle choose you. So its recommended to go light on high beta stocks, and heavy on cash or FMCG sector
Greatest Depression in Our Lifetimes This Decade?This is all just hypothetical. Everything will eventually form a parabola. Do people really think we'll have another 10+ years of an artificial bull market in America? Do people really think there's no consequences for the unlimited printing of money? Do people really think the stock market won't eventually have a massive correction?
It will be interesting to see how this decade will play out. Personally I'm pretty pessimistic about the future of the dollar and this potential market correction could be catastrophic and lead to social unrest given the rise in populism. Worst case scenario equals a modern day great depression that would be the biggest in the history of America. Just my opinion.
Hedge well. Much peace love health and wealth.
Oil had already been rejected at the 1.618 fibOil is at the highly significant 1.618 fib retracement which coincides with a trendline resistance. Current global conditions are highly unfavourable for oil prices due to political and economics factors. There is tension both internally as well as externally within opec countries and this is on top of the recession that has left a permanent damage on oil demand. Higher oil prices negatively impact global recovery and further price increases will likely be met with great downwards selling pressure from oil importing countries.
Next leg up seems certain here.-Strong break out of descending channel
-Resting on .618
-Will likely backtest the channel first (BTC loves to backtest triangle/wedge/channel breakouts)
-Approaching the 10 year trendline I wrote about in my previous analysis ~$80,000, 2.618. Very interested to see what happens up there.
-Bulls defended the relatively steep 1Y support
-MACD ready to cross over again
I was a little spooked by the last dip, but strong hands & cool wits prevailed. Defended the 50k level beautifully in the end. I say we are ready for 60-70 now.
10 Year Treasury / 3 Month Treasury Yield Inversion & RecessionNot my idea, but it does seem to hold some water. Note the orange spikes above the 10 Yr T Bill and pull up history 1990/2000/2008 serious corrections
6-18 months after the 3 Mo/10yr treasury rates invert, the US economy goes into recession
1991 was a 33% drop, 2001 - 83%, 2008 - 54%
I've seen longer data sets that hold true even farther back from FRED
*NOT FINANCIAL ADVICE - NOT A FINANCIAL ADVISOR*
QS - the Lance Armstrong - Down to $22 we GoNote the special shape that's appearing on every stock. PP - Lance Armstrong Edition
I think God is trying to send us a message, or maybe it's the other guy given the message.
21.87 looks like the next support level and happens to coincide with a FIB number.
Malaise for > quarter: Telecoms, Fast food, and Consumer staplesThese important sectors have not been booming for over a quarter (no Robinhooders around these sectors, and not worth a Reddit meme) -
- Telecommunications: T, VZ, TMUS
- Quick service fast food restaurants: MCD, YUM, WEN
- Consumer Staples (ETF is XLP): household products PG, CL, CLX: food MDLZ, GIS
How Big is the Tech Bubble?A ratio chart divides the value of the Nasdaq 100 by the value of (S&P 500+Dow 30+Russell 2000). The large spike in the blue line to the left illustrates how the NQ became so overvalued in relation to the S&P, the Dow, and the Russell.
If the ratio pulls back, I would say it may find its balance around the lower red line, after retracing the recent parabolic spike like it did in 2000.
I think it will keep going higher. I think the high prices of tech stocks are more legitimate this time around.
I believe I just made a "this time is different" type of comment lol.
Thoughts?
K-Shaped Recoverymany people still thinks we're in a V-Shape recovery , but it's a K-Shaped recovery in progress right now.
which is one of last thing you want to see in a major economy.
dumb money goes into many worthless tech companies and spike their market caps at unbeliavable levels. (just like before 2000 dotcom bust)
on the otherside industrial sectors are not showing any robust recovery signs.
from this perspective this market is totally unstable now and crash is inevitable.
This Signal in Bond Yields Will Predict the Next Recession.After one of the most unexpected years, I thought I should take a step back and look at macroeconomics a little bit, at one specific chart that I've been watching. That is the German Government 10-Year Bond Yield (DE10Y). I've been anticipating a signal in that chart that will indicate massive shift in global market trends and will bring us closer to the next imminent recession. That signal is the breaking of the decades-long descending wedge.
The momentum is still bearish, and this week the price got rejected at the upper line of the wedge. If this continues downards, then the economy remains in the same state. Central banks are printing currency at an unprecedented rate, and inflation is showing on commodoties and stocks and everything else. Governments are sinking more into debt, and the best place to put your money remains the stock market. That is until this wedge breaks. Because when it does, the bond yields will accelerate upwards. It will become more costly to borrow money. And the economy will slow down again. But this time, it is slowing down while everyone is extremely leveraged and deep in debt. We want to maximize our profit but we do not want to be caught in that state. That is why I pay attention to this chart and the DXY.
There are many charts that can indicate the same outcome, but I choose to focus on one only that does the job.
Now according to some Fibonacci levels, I predict another touch in October 2021. By then, perhaps the majority of zombie companies will have declared bankruptcy. Is it too soon for that? Will government regulation delay that even further? No idea. Too many factors to watch. So let's keep watching this one key chart.
AUD will fall to historic lows of 0.27 This is the boldest chart I have ever created. I personally hope that it doesn't happen. Mainly because if this plays out, life as I know it will be changed forever.
A global depression will send the AUD to 0.27 as money flows to the USD the "current" World reserve currency. The so-called "safe haven".
This will be devastating for emerging markets.
The Australian real estate bubble will pop due to a wave of unemployment sweeping through the country & also the incredible deflationary wave that has started crashing over financial assets. The rest of the globe will be feel similar effects, but the Aussie mortage to income ratio will come back to bite us on the arse.
The catalyst for this move will be blamed on the CoronaVirus. However it is just the scape goat to blame the crisis on.
Our debt based monetary system has a limited lifespan.
Our current system; Fiat currencies backed by only the paper they are printed on, with the USD as the world reserve currency is on its last legs.
Global interest rates are at historic all time lows, the new money coming into the system is being created at an exponential rate, money supply is climbing the hockey stick faster than it ever has done before.
True global growth started dying off a long time ago.
Out of the ashes of the current system the phoenix will rise.