Bubbleburst
SH, cleared for take off, runway Covid2020, no delayEquities are about to burst, I am very bullish SH.
USA leadership has spectacularly fumbled the ball in responding to covid. Hot spots are developing as Trump is hellbent on reopening the economy. This will set the USA up for a massive 2nd wave this fall, unfortunately. This will ensure business remains crippled, if not completely shuttered till spring 2021.
Trump doesn't realize that 'the economy' isn't an abstract thing--it's comprised of individuals whose health under-girds all else. The general health, safety, and well being of the country is our chief capital stock. Queue Abraham Maslow: Meet basic health and safety needs 1st.
Insane R:R available
Targeting $75-100 to begin
Btc Rising wedgeIt seems that btc always been so respectful when it comes to chart patterning, it reacts so accurately when a pattern is formed; wedges and rsi are the main tools among crypto traders i guess. Not always, sometimes it makes pretty random moves. Maybe it has to do a lot with retail traders and deluded people who wants to be rich quickly, which is the vast majority of this market. Anyway, price still within rising wedge. Sell on yellow trendline resistance or 50MA or wedge breakout.
Cheers!
We're all gonna REKT it
Very short on BTCHi sirs! Recession´s around the corner and crypto will not be the exception. Trend lines always has been a key support/resistance for btc. Use them as potential buy/sell entries (white,blue,red). Personally i still see btc as an extremely overvalued asset, same as fiat, gold, whatever. Possibly will be the peak of bear capitulation, and another tech bubble burst. Potential buy zone: 1000-600, below? i dont know as long as price bounces on 2015's bullish trendline
Just a dumb prediction. Cheers!
We're all gonna REKT it!
Did The Everything Bubble Just Pop??Inside a month we have nearly liquidated more assets than what was lost during the entire .Com bubble!
There is a chance to catch within a few months around 16-17k - however - the market won't fully be recovered and healthy again until we do a full reset all the way down around 12,000.
If that indeed happens then by the time its all said and done Wall Street would have lost more money than the .Com Bubble and Great Recession combined!
But hey at least the charts show that 2029-2031 should be booming again!
Peace & Love -
BK
2020 Recession. Today's Date: 3/15/2020Keeping it short and sweet!
Monthly bearish divergence that has been brewing since December 2017 and the fed printing money like crazy. You don't need news to tell you when to short and set puts...It's right in front of you.
See y'all at 14.6k-15.4K DOW.
Not financial advice! Just stating the obvious.
Silver, Gold and now Palladium !Hey guys, your favorite bear is today interest buy the case of palladium !
Palladium shows signals of accelerated parabolic phase which tends to confirm a bubble market.
Let's recap the state of the precious metals market :
- Silver is in crash phase.
- Gold in an advanced bearish consolidation.
- Palladium in a bubble market.
Technicals indicators :
Price is well overextends over 200, 55, 21 and even over 7 monthly EMA : this is a strong signal of bubble.
RSI shows overbought conditions on monthly chart and bearish divergences on weekly and daily.
TD Sequential gives us a perfect daily 9 candlestick which implies a potential correction.
DISCLAIMER : I'm not financial advisor. I'm doing it for my own entertainment. You are responsable for your losses because you trade at your own risk.
PLEASE KEEP SHOWING ME YOUR SUPPORT : LIKES and follows are very HELPFUL.
Feel free to comment, share and follow for receive more informations.
Cheers !
One DAY one BURST : Good bye Vuitton.Hello guys, as you can see since Yesterday CaC 40 is my new victim.
What is MC ?
MC/LVMH : is a French multinational luxury goods conglomerate headquartered in Paris. The company was formed in 1987 under the merger of fashion house Louis Vuitton with Moët Hennessy, a company formed after the 1971 merger between the champagne producer Moët & Chandon and Hennessy, the cognac manufacturer.
LVMH has take the lead of the luxury market and is showing huge returns.
My view :
Much actions on the CaC 40 and more generally in Global Stock market are showing signs of parabolic growth. Everyday i select an action where i see sign of weakness in the parabolic structure. This type of trade is highly speculative but offers huge returns.
Technicals :
The 5rd wave is extended to 4.618 of the 1, that's show over price territory.
RSI and MFI are both overbought and divergent.
In Hyperwave theory the parabolic structure looks complete.
Type of Market : Irrational (Bubble).
Type of trade : Reversal.
Stop loss : 416.
I hope you are enjoying this post, please like, share and comment to show me your support.
Let me know in the comment section which chart (Stock/Forex/Crypto) you would see me to analyse.
DISCLAIMER : I'm not a financial advisor. You trade at your own risk. I can't be responsible for your losses.
Shiller S&P500 P/E RatioBrief Description About the P/E Ratio
The p/e ratio is the price of a share of a stock divided by the earnings per share, so it’s the earnings that the company makes during a year divided by the number of outstanding shares. Once calculated the answer is a multiple. This is one of the best valuation metrics that investors have been able to use to judge whether they’re buying an overvalued or an undervalued stock.
Using the logic of this fundamental indicator for individual stocks, Dr .Robert Shiller applied this to the S&P 500 , using the S&P 500 as a general gauge of the entire stock market. By doing this, it allowed us to see whether the stock market is undervalued, fair valued, overvalued, and in a bubble, etc.
About the Shiller S&P 500 P/E Ratio
The Shiller p/e ratio is slightly different from the traditional S&P 500 p/e ratio where; instead of dividing by the earnings of one year, this ratio divides the price of the S&P 500 index by the average inflation-adjusted earnings of the previous 10 years. The ratio is also known as the Cyclically Adjusted PE Ratio (CAPE Ratio), the Shiller PE Ratio, or the P/E10.
Areas of the Shiller S&P500 P/E Ratio
As you can see on the chart, there are several different ranges with each one describing the "state" of the stock market
0-5 = stocks are extremely undervalued
5-10 = stocks are undervalued
10-15 = stocks are at fair value
15-20 = stocks are overvalued
20-30 = stocks are in a bubble
30-40 = stocks are in an extreme bubble
Interpreting the Multiple
Think of the multiple this way; you are paying (insert multiple number) times the earnings . Another way to interpret the multiple, it can be counted as the number of years it would take for the individual to get his investment back.
Example #1 : Great Depression, one of the worst times in history, the Shiller S&P 500 p/e Ratio was above 32.56, this means you are paying 32.56 times the earnings , and it would take the investor 32.56 years to get his investment back.
Example #2 : 1998-2000 the Shiller S&P 500 p/e Ratio was 44.19, this means you are paying 44.19 times the earnings , and it would take you the investor 44.19 years to get your investment back, even if they were to give you all of the earnings as dividends you would still have to wait 44.19 years.
That’s insane, that is a lifetime!
“Timing beats speed, precision beats power”
Analyzing the Shiller S&P 500 P/E Ratio
One thing you will notice when doing some analyses of this multiple is the following: whenever the multiple surpasses the 20-30 area, the multiple always returns back to 0-10 area. Once the trend reverses and the bubble pops, it doesn’t stop until the multiple has reached some somewhere in the range of 0-10 (undervaluation) as I have illustrated above with the blue arrows. It does this without exception. It would need to revisit undervaluation before a new “healthy” real bull market were to start again. Once the trend has reversed it doesn’t go straight down, it mimics the movement of a ball rolling down the stairs. You can think of each step of stairs as one of the areas it has to go through before eventually reaching the bottom, similar to how the Fibonacci retracement tool works.
Using this historically repeating pattern, I'd say we are currently on another step down the stairs before we eventually make our way down the bottom of the stairs where we revisit undervaluation areas.
Once have reached the undervaluation areas, this will also be a moment of consolidation where investors, traders, pension fund managers, self-directed IRA owners will have most likely given up and have thrown in the towel. You will most likely see news article titles saying something along the lines of: to invest into the stock market is one of the worst things you could do, but it couldn’t be further from the truth. You can apply this reasoning to all the different kinds of markets and remember these...
"When the time to buy comes, you won’t want too"
"Buy when there’s blood in the streets, even if the blood is your own"
Why has the the multiple so high over the past 20 years or so, well at least why I think it is high
These are some explanations came up with
1 - Interest Rates are Low
Specifically the "Interest Rate - Investment" graph
For those who have taken macroeconomics in college or university, etc know about this graph. Essentially the idea/theory behind this graph is that investments change according to interest rates.
High interest rates = fewer "projects" approved
When interest rates are high, and people want a good return on their investment what do they buy? People buy bonds, not cash, because cash
doesn't earn interest. By having high interest rates, money is "expensive", it isn't readily available. High interest rates = slower economic growth .
Lower interest rates = more "projects" approved
When interest rates are low people are going to do the exact opposite of holding bonds, they are going to hold cash, because the rate of return
is low enough to not put their money in a locked contract for a specified time frame. When interest rates are low, money is "cheap", it is more
readily available. Low interest rates = fast economic growth.
alevelecons.weebly.com
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2 - Bond Yields are Low ---> Stock Market
The second reason here ties in with the first one. When interest rates are low, bond yields are low, thus no where else for money to go, except the stock market, the money will flow elsewhere, it will flow to other parts of the economy where investors can get a higher rate of return on their investments compared to the rate of returns of bonds. Buying a bond forces you to be in a locked contract for a specified period of time, with interest rates varying. Whereas, in the stock market there is no locked contract, you have more mobility, very high amounts of liquidity, more mobility and freedom to do as you wish with your money.
Example: say you bought some 10 year US bonds in January 2000, you would be getting somewhere around high 5%-mid 6% on your investment, but remember this contract is for 10 years, your locked in for 10 years, can't move out. Instead of buying 10 year US bonds and getting on average 5-6%, you invested in the stock market (ex: SPY ) you would be getting more, about 7-10% on your investment. Which is more logical?
Bond yields have been dropping from the beginning of the millennia, you can see that from around 1998-present time (link below).
stockcharts.com
These are some explanation I was able to come up with and why I think the multiple has been so high ever since the beginning of the millenia or so, I might be wrong, I might be right, don't really know, but thought i'd just put it out there, that others may see this and can get the gears turning.
Hope you enjoyed the post!
The mother of all bubbles this MSFTi Have waiting for these moment, clearly im amazed what micrsoft did these week with low volume, all these week after sever drop on monday, they push fang the first hour and long the carry trade agressively, so the rise first and then slow fall, but friday microsoft is exhausted, msft gain like 100 B In 3 days, looks bullish, but to me it looks like that the nasdaq has fall in a big bull trap,i dont know if im wrong, but the facts are the facts, the market has been manipulated in huge proportions since starting to drop on may 1, CNBC, and the admistration are sending false optimizing to the markets, "Constructive talks" "trade deal possible by next week" the fact the is just lies and more lies to keep the bubble as long as possible, they pump market pre market, and then said bad news before market close or after hours, but in reality for me looks like the crazy move from jan-2019 is just the biggest bull trap of our decade, people would remember these like that. fact are the facts:
-15 months of trade talks
-tarif increase from 10-25% are in effect
-more tariff on the way
-china retaliation on more tariff and honestly i expect more after huawai ban
- china media are telling the truth no trade deal no trade talks to keep these lie alive
Bubbles are created on false optimizing, msft is the most expensive stock in dow jones industrial and these stock always trade at the same level as apple in market cap now is more 120 b more expensive than apple.
they dont let drop msft to even $122.82 20 day, is so bizarre and absurd to watch the price action of msft, But honestly i think they push to hard, and now the downside will be amazing, once thing fall below 120 will be fireworks, msft is the new apple like october, they speculate about apple and dont let it drop like that and then BOOM, msft is just too oberbought, if im right these fracking bubble could fall hard beetween by the next 2-3 weeks, Good luck to everyone!
QQQ Fraud Street is making another bubble that is about to POP If you compare this bubble when they keep short vix until implode, stock market has go parabolic since march 7 Using fang names like apple Amazon, fb, and my favorite bubble is microsoft, the vix is so low, and never im my entire life as a trade have seen non correlated yields with the stock market. and earnings not even release market keep ignoring data, just buying every single dip, man love to pop bubbles, just becareful guys, dont let fraud street to keep washing your braings #QQQ
S&P 500 Demolishes Any Chance of RecoveryAloha, trader! Welcome back to another S&P update.
If you've been keeping up with our posts, I noted over the weekend that traders should be watching the S&P 500 index, on the brink of a crash. This week, that crash has been playing out, destroying the 2 month bullish rally we've been seeing. Today was a big day for the index, as it needed to beat possible support at around $2755. The bears have won yet again, however, and as we predicted, S&P smashed below. We can expect further bearish price action.
I still estimate the index to drop as low as $2500, but perhaps faster than I had originally imagined for such a large fund. Nevertheless, I will hold my short on the index by longing shares in SPXS. I do not expect any noticeable bounces to occur, MACD for the index is strongly indicative of more bearish action, but we've seen crazier.
We've been right about the initial S&P drop, the crypto breakout and Ethereum rally, will we be correct about about a second drop for S&P?
Thanks for reading, leave a like if you agree!