Madrid

Madrid Wizard

Last week se saw a lot of sell activity in the market. I see there's a Support level around 4300, where it will hit a double bottom from the level it reached on the month of October las year. All the sectors in the red, with the exception of Energy, which has been having a rally and it's still in an uptrend unless the indicators say otherwise. Gold is gaining...

Madrid Wizard

Currently we're at a secular resistance level where the prices have reached the top of the uptrend channel. Signaling a painful, but necessary correction. Price Structure. The SPX has had a solid uptrend right after the recovery from 2009, this sets the start of the Bull market, so the 0.0 Fib level. Consequently it sets the the 0.618Fib level at the peak...

Madrid Wizard

Buy When There's Blood in the Street ... After the recent well known events in the financial market and the crypto market I recalled a quote by Baron Rothschild: "Buy when there's blood in the streets, even if the blood is your own." I would say this is very true; however, in the world of trading "Timing is Everything", don't just go blindly with the old saying,...

Madrid Wizard

The so called 40K support was pierced like a hot knife on butter. The hope is that the old support in the 28K-30K holds, else the Head and Shoulders pattern will be a confirmed story. Trend : It has been a downtrend since its peak at 69K, all the way to its current 35K level. It was accelerated on Friday along with the overall financial market. Momentum :...

Madrid Wizard

Some bearish signs have been spotted in the Daily timeframe , which make me think we're at a negative momentum divergence and some provisions have to be taken in case this makes a correction. So far The market has been in a solid uptrend with some trend testing and dip buying. This has been repeated since the major downtrend we had in march 2020 when the...

Madrid Wizard

On March/April 2020 we hit irrational market conditions due to the abrupt halt in the economy. We can blame the pandemic as the trigger, however there were indicators that were already flashing a slow down in the economy. Then "Magically" the so called "V Recovery". Sharp, strong, "back to normal", unemployment spiked to unprecedented levels and went back to a...

Madrid Wizard

When there are new technologies never be the first nor the last to enter. This is the story of a very good company that is way ahead of its time and attracts a lot of investors because of the innovation. However, it's still not a profitable business. The space tourism is in its infancy. Richard Branson is one of the pioneers in this industry, and I'm sure the...

Madrid Wizard

Bitcoin Head and Shoulders After recently peaking at around the 66K level, Bitcoin retracted back to 41K, where it is hitting a critical Support level. If this holds it may reconsider a rally starting here, however the Head and Shoulders pattern looks like a text book H&S, so it could go down as far as 30K where it will test another critical support level. It...

Madrid Wizard

A few weeks ago I published this idea. This is a follow up. So far bitcoin has reached the 40,000 level, and it's fighting resistance there. The overall picture is an ominous Head and Shoulder pattern with a neckline around the key support level of 30,000. If this level holds then it could still be an attractive 30k-40k trading range, if not then the pattern...

Madrid Wizard

The events since September 2020 and April 2021 are a classic text book accumulation / distribution. The old saying says "Never short a dull market". Bitcoin was able to trade between 6,000 and 10,000 and it was bouncing in a range for a while. The volume had peaks in March 2020, when it was the mayhem in the markets, and once it recovered it kept discretely...

Madrid Wizard

Currently $TSLA found support at 540, where it started the rally up to 900 and it made a bounce in early March. It just hit the 540 level again to test that support. If this holds it may try another rally heading to 800, which is my target price. Any thing from 540 to 800 is a good earned money. If the support doesn't hold it may fall to 450, where it will...

Madrid Wizard

There is a slanted Head and Shoulders pattern forming. The neckline doesn't have to be perfect to call it a H&S, the left shoulder has momentum and volume, the head shows a momentum divergence and a fall in volume and the right shoulder made it to the Resistance level of the left shoulder, with a very weak momentum and a very reduced volume. This market may still...

Madrid Wizard

Introduction If traders back in the day would have had the modern technical analysis tools they could have forecasted the market crashes more easily. Once the past is gone it's gone forever, but we can always go back to learn from it. Those who ignore the past are doomed to repeat it. In this publication I back tested a couple of tools which basically detect...

Madrid Wizard

Economy Analysis $DIA $SPY $QQQ $UVXY $STUDY We’re witnessing an extraordinary period of time in World History. We recently had the biggest Market loss ever, and the largest market recovery rally as well. We came from a pandemic that paralyzed the world. Weak businesses have gone bankrupt, but the strong ones still have to struggle with the low demand of...

Madrid Wizard

$SPY $DIA $QQQ $IWM $UVXY : This market has been doing higher highs on a volume divergence and already on a VIX divergence. The VIX has found a support level and it has been consolidating at 28. A reversal is expected since those that bought the panic have already made a profit and those who were caught in the euphoria are close to break even. It makes sense...

Madrid Wizard

$SPY $DIA $UVXY The SPX trend had remained intact since this bull market started in 2009. There have been scary trend corrections but the main trend has been pointing at higher levels until now. For the first time since the index meaningfully breached the trend in an attempt to find support, which was touched t 2190 points, slightly above the Obama's bull...

Madrid Wizard

This chart shows the COVID-19 cases worldwide and the top 7 countries as of the date of this publication. We're in the process of reopening the economies, but since the curve has not flattened we're risking that the numbers will pick up again. The economy can't be halted forever, and unless an effective and efficient treatment is released along with preventive...

Madrid Wizard

This chart shows the the confirmed and recovered cases and the number of deaths after the COVID-19, it shows the cases globally and it breaks down the detail of the countries with the most cases reported. We see a flattening curve for China, and an alarming rise in the case of the USA, which became the epicenter now. What is alarming is the acceleration curve,...