NASDAQ reaching end of Capitulation? Or only half way there?
Updated
Every investor should ask themselves, are we in store for the usually 20-30% correction?
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
I have the most recent corrections in history highlighted, their reasons listed.
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term stocks go up.
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
I have the most recent corrections in history highlighted, their reasons listed.
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term stocks go up.
Note
Hopeful this is the bottom.Note
>>> Just a Few Market thoughts for BTC and Equities.I believe we are witnessing a successful support test by Bitcoin.
We are also witnessing a temporary lull in equity selling. Think we could see a rise spurred by earnings, combined with new fed updates hinting less extreme measures than expected. Market is very oversold in my opinion.
RSI is also looking very positive on the Daily & Week time frames, for both BTC and the Nasdaq.
Note
Looks like the May Rally will not be happening. Maybe fall down to the -30% support levels is next. Don't panic sell minus 25-50% positions just to buy them up a few weeks later at 10% higher than current levels. Buy a Case of beers and enjoy time with your friends. This market is just depressing, distract yourself, go workout, enjoy a nice dinner. I know ill be focusing on F1 Miami to distract myself from this wild capitulation.Note
Hey everyone, this market is in capitulation mode. I know the markets are bleak at present. If you're in a similar mindset, you're likely struggling to keep the eyes off the charts today. Have a look at the last few corrections. They briefly broke under the 200 Daily SMA. Focusing on the NDX, looks like we have seen peak fear. This is what capitulation feel like. It makes you seriously question your strategies. Makes you consider what if you sold now and buy 10-20% lower. You might successfully do something, to make the best of your situation. You could time it right and make a great decision. I think it's equally likely, we would just miss a rapid bounce. Might be a bit biased but we can only look back at history in these situations. Goodluck Chaps
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