Friday Futures up BIG, a Deadly Comparison w/ Thursday's Close?
Updated
Hello, I hope everyone is well and is staying safe. I took a look at DOW futures before heading to bed and got chills at what I discovered. Long story short, pun intended, I saw what appears to be the recipe for disaster. I'm seeing this from a logical standpoint only, just to be clear.
The 50 DMA is right on the edge of the bearish wedge pattern and a green open should get it there easily tomorrow. I think it is likely that we close in the green either with the candle pushed flush against the 50 Day Moving Average, or we blow right up to the 50 Day moving Average and get rejected off of it and the selling begins. I think it would be smarter for institutions to close the DOW green lightly rejected off, or flush against the 50 Day Moving Average. This way the small-time retail investor can head into the weekend full of the same irrational exuberance they experienced during this entire bear rally. This would be the best bet for Wall Street to rip everyones face off again in a "big short" scenario. Most people buying stocks "just because they go up" have no clue about all of these factors at play. It's sad, but if this plays out a lot of unsuspecting Americans will be screwed once again like 2008 all over again, on steroids. I hate to bring such bad news but the writing is on the wall. I hope I am wrong, but if I'm not, I hope this helps at least a few people.
Here's a list of both the pros and cons for the DOW in my opinion
Pros-
Unlimited Money Printing
The Fed and gov't are promising that this time will be different
Cons-
Global Pandemic
Total Economic Shutdown
The Fed and Gov't likely haven't solved our problems in 2020 considering their track record of 100% failure rate.
Looming bearish SAR Flip
50 Day Moving Average Resistance
Recent Death Cross
Bearish Rising Wedge Pattern nearing the squeeze point which proceeds a massive move.
MACD turning down for a bearish cross
Stochastic RSI is well into overbought territory
An 11-year bull market literally just ended
Bull Markets are typically 7 years long
Bear Markets never end in excitement and optimism
Pandemic or not, we were due for a crash with the massive corporate debt bubble and a very real and looming liquidity crisis.
Other Cons described in English-
All of your friends and 3rd and 5th cousins rushed to buy TSLA stock at over $700 per share.
The cashier at the gas station (selling gas for 1.35/gallon btw), is bragging about using her stimulus check to buy TSLA stock.
12 year old kids on TikTok are telling you to buy TSLA and are getting millions of likes and have all positive comments.
The media is telling you to buy
The 50 DMA is right on the edge of the bearish wedge pattern and a green open should get it there easily tomorrow. I think it is likely that we close in the green either with the candle pushed flush against the 50 Day Moving Average, or we blow right up to the 50 Day moving Average and get rejected off of it and the selling begins. I think it would be smarter for institutions to close the DOW green lightly rejected off, or flush against the 50 Day Moving Average. This way the small-time retail investor can head into the weekend full of the same irrational exuberance they experienced during this entire bear rally. This would be the best bet for Wall Street to rip everyones face off again in a "big short" scenario. Most people buying stocks "just because they go up" have no clue about all of these factors at play. It's sad, but if this plays out a lot of unsuspecting Americans will be screwed once again like 2008 all over again, on steroids. I hate to bring such bad news but the writing is on the wall. I hope I am wrong, but if I'm not, I hope this helps at least a few people.
Here's a list of both the pros and cons for the DOW in my opinion
Pros-
Unlimited Money Printing
The Fed and gov't are promising that this time will be different
Cons-
Global Pandemic
Total Economic Shutdown
The Fed and Gov't likely haven't solved our problems in 2020 considering their track record of 100% failure rate.
Looming bearish SAR Flip
50 Day Moving Average Resistance
Recent Death Cross
Bearish Rising Wedge Pattern nearing the squeeze point which proceeds a massive move.
MACD turning down for a bearish cross
Stochastic RSI is well into overbought territory
An 11-year bull market literally just ended
Bull Markets are typically 7 years long
Bear Markets never end in excitement and optimism
Pandemic or not, we were due for a crash with the massive corporate debt bubble and a very real and looming liquidity crisis.
Other Cons described in English-
All of your friends and 3rd and 5th cousins rushed to buy TSLA stock at over $700 per share.
The cashier at the gas station (selling gas for 1.35/gallon btw), is bragging about using her stimulus check to buy TSLA stock.
12 year old kids on TikTok are telling you to buy TSLA and are getting millions of likes and have all positive comments.
The media is telling you to buy
Note
I'm sorry that the chart is so hard to see. I hope this helps...
Note
On track to print the first close on the daily timeframe confirming the start of the wedge breakdown...
Note
Price action is relatively flat and is printing a diamond top/bear flag on the daily charts that have to bulls completely fooled as they continue to get high on their own supply. It's going to be fun watching them get their faces ripped off like they did in 2008
Note
Bulls are going to get stuffed
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