What would a crash look like?
Updated
The orange lines are all the same, they show the angle of decent in our recent crashes.
The yellow lines are all the same, they show the angle of descent of freefalls during those crashes.
Will the market correction (aka "crash") drop us back to the previous set of trend lines, around the $200 - $220 range?
Would you say I'm crazy if I told you I wouldn't be surprised if it fell all the way to $40?
The 2000 dot-com bubble caused the DJIA index to drop 35%.
The 2000 sub-prime crisis caused the DJIA index to drop 55%.
How much would it drop this time? 65% ?? 75% ?? 85% ??
I extended out the 'crash angle of decent' to see where that'd take us... 2023. WOW!!
What if we look at it another way?
Each crash took us close to the $80 mark in less than a year, before setting a new low sometime after.
I laid out an alternative course with many freefalls landing us around the $80 point a year from the max peak.
The market is influenced by the traders.
Traders are influenced by patterns, therefore the market exhibits patterns.
Will this crash pattern repeat itself? I guess we'll just have to wait and see.
The yellow lines are all the same, they show the angle of descent of freefalls during those crashes.
Will the market correction (aka "crash") drop us back to the previous set of trend lines, around the $200 - $220 range?
Would you say I'm crazy if I told you I wouldn't be surprised if it fell all the way to $40?
The 2000 dot-com bubble caused the DJIA index to drop 35%.
The 2000 sub-prime crisis caused the DJIA index to drop 55%.
How much would it drop this time? 65% ?? 75% ?? 85% ??
I extended out the 'crash angle of decent' to see where that'd take us... 2023. WOW!!
What if we look at it another way?
Each crash took us close to the $80 mark in less than a year, before setting a new low sometime after.
I laid out an alternative course with many freefalls landing us around the $80 point a year from the max peak.
The market is influenced by the traders.
Traders are influenced by patterns, therefore the market exhibits patterns.
Will this crash pattern repeat itself? I guess we'll just have to wait and see.
Comment
Typo: 2008 subprime mortgage crisis, not "2000"
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