Cashbusa

Cashbusa

If there is any tell-tale sign that a massive recession is coming, it is this: 2-Year - 10-Year yield curve inversion. If you look back in history you would see that every time this yield spread has inverted, the economy and the stock market has gone into a recession. The problem is that this is the deepest inversion from an historical perspective - deeper than...

Cashbusa

SPY is looking weak based on the recent price action. With the price closing below the 20 day SMA, and a shooting star kind of candle forming with today's trading, can we expect further selling? Possibly. A stat I would like to share is that the Santa Clause rally usually triggers after the 14-16 of December. But before that, there is fierce selling days prior to...

Cashbusa

Traders, be careful with BTC at this time. There is a massive bear flag playing out on BTC and there is little to no support underneath the channel I have drawn here. If we extrapolate the bear flag pole, we get a level of around 11k on BTC. For anyone bullish on BTC, we saw a rejection wick kind of candle a few days back when price was trying to break out. This...

Cashbusa

The US dollar has seen a clear rejection from its 200 day SMA. Does this mean we might see S&P500 go back to the 4000 level and retest its 200-day SMA and the downward trend line? That is within the realm of possibilities, and cannot be discounted. But you know what has been performing phenomenally? BONDS! Both corporate and government bonds have been aggressively...

Cashbusa

Sure enough BTC has broken the first line of resistance, the 20-SMA on the daily timeframe. But there will be serious resistance ahead, as I have marked on the chart. A followthrough is very important at this point for further confirming further strength on BTC. Not to say that the bear flag is pattern is still in-tact and any weakness will be met with massive...

Cashbusa

SPY is fast approaching the last demand zone, which is 390. If the dollar continues to strengthen, we can see see 390 very fast. Sure enough 390 is going to be a fighting zone between the bulls and the bears. A closure below 390 opens the door for some massive shorting to occur on the SPY. Will J Powell move the markets on Wednesday? Hmmm.....

Cashbusa

There's a potential bottom forming on the DXY on the daily timeframe at the time of writing. Multiple rejection style candles confirm that there's demand at this zone (boxed)! To confirm the idea further, the 200 day SMA is sitting exactly at this level. There will be some big players entering this trade - longing USD and short EUR, maybe even shorting SPY. The...

Cashbusa

Bitcoin, like other cryptocurrencies, is going through a bust cycle. Here is a chart to demonstrate how much further selling we can expect on BTC from this point on. Based on Historical data, bust cycles have averaged a massive 88% drop from peak to trough before bottoming out. If this thesis is true, we can expect BTC to be in the $9,500 - $12,000 range when it...

Cashbusa

The dollar is coming into the previous demand zone. Last time it came into this zone there was a massive rejection wick kind of price action. A very real possibility that we see similar kind of price action this time again on the dollar. Moreover, the 200-day SMA sits just around this zone as well, which should prompt lots of institutional and retail traders to...

Cashbusa

Please be very careful taking long positions on Bitcoin, or any crypto currency for that matter. All crypto currencies are going through a cyclical bust and it may not be over just yet. There's a massive bear flag building on Bitcoin and shorts are piling in. Next target is between 12,000 to 9,500. BITSTAMP:BTCUSD