Long

Capitulation then Face Ripper

Updated

Get ready for a face melting monster rally EOM into April.

Trade active

Longed it intraday but I do not trust this move EOW feels like a head fake, rejected from TL OED, still expect a final move to washout low this month, probly next week. Bull reaction wave EOM > April likely IMO

Comment

Folks, look hard at this chart pattern. This is a Falling Wedge. THESE BREAK UP, NOT DOWN!
Many authors proposing End of World Calamity, Doom, &tc. Death Crosses been in vogue. Notably, the Death Cross usually occurs near end of bear move as culminating event. So, yes we ought to expect lower, but get ready for higher thereafter.
Worried investors asking if they should sell out now. Fear index is peaking at extreme and capitulation occurred on Monday with DJI -800, SPX -125, NQ -500.
Expect a final washout low before a monster faceripping rally; this is how market makers get your money, they buy your stocks when you dump them in panic.
Baron Rothschild: "Buy when there is blood running in the Street, even when it's your own!"

Comment

Ideally, the falling wedge will form after an extended downtrend and mark the final low. Progressive contraction of high/low trendlines towards a point marks decreasing downside momentum. Read:
school.stockcharts.com/doku.php?id=chart_analysis:chart_patterns:falling_wedge_reversal
The breakout is difficult to predict as finishing bearish moves occur suddenly near the wedge tip (like Friday's). Get ready...

Comment

IMO index is in (v) of (V); final flush coming.

Be wary; advent of WW III, release of nukes by former Soviets, rate hike of 50 bp or all the above could trigger a massive flush... absent these events, should enjoy a rally EOM IMO

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