Economy
$SPY Let's See Where We GoCurrently, $SPY is working with in solid range, but it looks like $385 might be the bottom. If it breaks $385 we will move down to $330 but I doubt it breaks. I think is not the beginning of the end but the start of a new trading pattern. Chop possibly for the rest of the yea. Up and down movement working within the range of $450-$410, but again the market can do whatever it wants but my guess is we do not see $500 for another 2-3 years, we got some consolidation to do before we get that type of movement, the last two years are bad examples of the market volatility and movement. The market relied heavily on tech stocks to bolsters itself through the pandemic, with strong earning reports quarter after quarter from the FAANGs (largely tech companies), the "market" was able to rally. The "rally" was more so bullish sentiment built on a façade, it was like looking at a mirage of water in a desert, it looks great but when you finally get there, there is no water. That is how our market acted, we finally got to the top, we got out of the pandemic and we realized there was no water. The market was overbought, there is a myriad of reasons why: stimulus checks, retail trading boost, people staying home, transportation cost reduction, you name it. Yet no one factored any of these into their estimations, like how could you not factor in the price of gas in a company like Amazon, gas costs went down, product costs remained the same, margin increase. But let's say you did see that and factor it in, you also missed the fact that over millions Americans continued to eat, while the workers to produce food decreased, leading to a decrease in reserve supplies to produce food, leading to global shortages that we will be facing in the next couple of months. By the time most people realized this, it was too late. But none of the matters because now people overreacting, they are selling everything and that's where you the smart savvy investor come in.
Snapchat is down 40% today (5/24), oversold, when people are bearish bad news becomes the worst news in history, and this plays into my theory. That the reason the market is tanking is not due to some economic collapse, the stock market doesn't work in tandem with the economy anymore, not since 2008. If it did, 2020 and 2021 would have been much worse. No the stock market operates on it's own and is controlled by major capital. Tech stocks need to rebalance, they were overbought, this should not be a shock to anyone. In order to achieve in equilibrium in the stock market we most lower the prices of the FAANGs + MTBV, this will allow the market to find a balance to build up from. The issue with selling the FAANGs + MTBV is that drags down the entire market, which if you remove the tech sector has been down for the last couple of months, so mid-caps and small-caps have been hammered by this downward movement. Snapchat being down %40 is a buy opportunity, Pinterest losing 23% off Snapchat bearish sentiment is a buy opportunity, Trade Desk hitting almost a 2 year low, buy opportunity. Even if I am wrong, and the market turns down for the next 1.5 years, in 3 years you will have made a profit. That is the wonderful part of the stock market, in a 20 year time span you are less than 0.01% to lose money. But if I am correct and the market jumps from here you just missed your best buy opportunity.
FAANGs + MTBV:
Facebook (Meta)
Apple
Amazon
Netflix
Google (Alphabet)
Microsoft
Tesla
Berkshire Hathaway
Visa
📊S&P500: recession vs growth in 2022! Prediction for BTC!Hi friends! In this idea I will share my point of view about the stock and the cryptocurrency market in 2022. Perhaps you have noticed how they are linked? Will 2022 be the year of the big fall or the price will renew ATH? Well, let's start one by one.
📊The stock market. As you can see from the chart, it has been rising for about 100 years now. The 2020 covid-19 crisis looks like a local correction compared to the Great Depression of the 30s. Back then, the market fell by 89% and was only able to recover after 23 years. After the pandemic crisis began, the market recovered 3-4 months only to its previous ATH. Remember how much panic there was in the market? It is your choice to take advantage of such opportunities or to panic.
After the abandonment of the gold standard, the dollar lost its peg to gold reserves and the new financial system let the opportunity to print fresh money to loan to creditors. There are many pros and cons, but that the U.S. remains the world's economic leader by a wide margin is a fact. It also led to the 2000-2001 .com bubble and the 2008-2009 real estate crisis. But 12 years later, the S&P500 is already up 3x.
🚩Fundamental analysis:
1️⃣ the growing inflation is bad for the the stock market growth. Rising price of the oil, gas and food (wheat, corn, sunflower, soybeans etc.) starts hiking inflation rate. But USA will start to accept Venezuela oil after the several years ban. For your understanding, Venezuela has the largest oil reserves in the world so it will allow to keep the oil price at the previous levels.
2️⃣ The unemployment rate is 3.6%, which is a pre-crisis level! This is an indicator, which shows that the economy is in good condition.
3️⃣ Investment outflows from the EU in February alone amounted to $15 billion! This is the largest outflow in a decade. Investors are looking for safety, so all that money has been flowing into the U.S. stock market for three months.
🚩Technical analysis (TA):
1️⃣ The first value zone is $380 to $400. Such value zones are always a huge support for the price.
2️⃣ The key $400 level. Even though the price broke it down, the whales collected a lot of liquidity to open long positions. Of course, there were a lot of stop-losses of retail traders here, most of the margin positions liquidated.
3️⃣ Volumes we haven't seen in over two years. As you know, there are two sides in trading: those who buy and those who sell. If such volumes appeared, someone has accumulated a huge position for the first time since 2020. During the first volume growth, those who bought at market ATH were liquidated, and during the second volume growth, those who bought back from the first fall were liquidated also.
Fundamental and technical analysis says the market should be rising. Even despite the reports about a new pandemic (🙈 pox) the world has adapted and is ready for new challenges.
✅Why is it so important for us that the stock market grows? As we have seen over the past few years, Bitcoin has not yet become a reserve asset and often copies the movements of the U.S. stock market. While the stock market is still growing, the cryptocurrency market is growing as well.
📊The cryptocurrency market. The indicator of the cryptocurrency market is Bitcoin. The price of 99% of all altcoins depends on BTC cycles. As you can see from the Bitcoin chart, it has been in a rising cycle for over 10 years. How to understand it? It makes higher highs and lows, which is a very positive signal.
🏁Will Bitcoin fall to $20,000 or has it already started it`s rise to $100,000? It doesn't matter in the long term. As long as the crypto industry grows and Bitcoin makes HH and HL, growth will continue. Learn how to trade now, use the ideas I post, ask the questions in the comments!
💻Friends, press the "like"👍 button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Nasdaq Plunge coming soon 5 Months of the ATH before the market crash, Nasdaq managed to find support around 24% down. When this support was broken, Nasdaq crashed by another 30%. 2008/09 housing market crises caused a world wide recession.
Are we seeing similar situation in 2022?
The technical analysis would suggest it is very possible. Not to mention the war in Ukraine, rising energy costs, inflation as well as a possible food shortage.
Have a look and please share your comments.
EUR/USD Daily Chart Analysis For May 20, 2022Technical Analysis and Outlook:
The Euro has seen a significant dead cat bounce throughout the week of trading to surpass the 1.06 mark; however, it seems to be struggling with the Key Res 1.062 level. On the downside, the Mean Sup 1.045, Key Sup 1.038, is the main target - The ultimate Inner Currency Dip 1.031.
DJT:bellwether for stocks & economy just sliced thru 14k supportThis is bad! Stocks are falling even when DXY dollar index & TNX 10-yr yield are retracing.
The Dow Jones Transportation, a leading indicator for the stock mkt & the economy, just
zipped through the 14k key support, down 7.41%. All stock indices had a capitulation-like move Wednesday 18May, the worst since the pandemic days. Even defensive staples, household retailers like Target & Walmart fell.
DTJ has fallen into my green support zone. It may fall further it does not recover 14k soon.
Not trading advice
NASDAQ 100 (Fibonacci Analysis) Base Case: "The Final Rally"
Blue dots provides good dates & price levels to enter short or long position(s).
Idea (1):
LONG
Entry Price: 11,500.00
Entry Date: June 6, 22'
Price Target: ~$14,350.00
Date Target: Mid to Late Aug. 22'
Idea (2):
SHORT
Entry Price: ~$14,350.00
Entry Date: Mid to Late Aug. 22'
Price Target: $12,800.00
Date Target: Early October 22'
Idea (3):
LONG
Entry Price: $12,800.00
Entry Date: Early October 22'
Price Target: $15,350.00
Date Target: Late Jan. 23'
Idea (4):
SHORT
Entry Price: $15,350.00
Entry Date: Late Jan. 23'
Price Target: ~$10,000.00
Date Target: May 2023
Idea (5):
SHORT
Entry Price: $14,000.00
Entry Date: Early March 2023
Price Target: $10,000.00
Date Target: May 2023
Tesla 22'-23' Forecast (Fibonacci Analysis)Base Case:
US Equities are experiencing broad base revaluations due to excess demand in the markets from the 2020 Stimulus. As a result, current markets are survival of the fittest & higher interest rate environments do not suit equities. I believe the markets are currently pricing in the highly anticipated two 50bps (FEDS FUNDS RATE) on June 14-15 & July 26-27 giving stocks room for the final bull rally (End of June - Q1 23') to begin the inevitable bear market, or "hard-landing". (Q2 23 - TBD).
I believe the risks of a recession in 2023 are 7/10.
Idea:
(Long)
Entry Price: ~$700.00
Entry Date: ~June 24, 2022 (Mid-to-late)
Price Target(s): $1,150.00, $1,250.00
Date Target(s): Mid to Late August, Q4 22' - Q1 23'
(Short)
Entry Price: $1,150.00, $1,250.00
Entry Date: Mid to Late August, Q4 22' - Q1 23'
Price Target: ~$660.00
Date Target: ~June 26, 2023 (Mid-to-late)
BTC Mid-Term 22' Forecast (Fibonacci Analysis) Base Case:
BTC will consolidate for the duration of Q2 as the FED are set to rate hikes in June, July & possibly in August/September this year. BTC will look to break out of consolidation in early September (09/12) and mid-October (10/15) towards the $57,000 handle by Q3-Q4 22'.
Idea (Long):
Entry: $27,000.00
Price Target: $57,000.00
Date Target: Q3 22'
Gold (Fibonacci Analysis) Idea:
Long Gold (~May 22, 2022)
Price Entry @ $1,704.00.
Price Target @ 2000.00
USDJPY (Hedge Idea) With all financial markets preparing for the upcoming summer rate hikes, I predict markets will consolidate within a larger than usual range presenting great opportunities for investments.
Next Hike: June 15-16, 2022.
Hedge Idea (Scale / Intraday):
Short:
Scale into positions when price breaches 130.000 handle up to the top third end of the range (131.500)
Long:
Scale into positions when price breaches 128.250 handle & below to the bottom end of the range (127.000)
POST FOMC HIKES (Mid-Term Forecast):
LONG
Target Price: 140.000
Target Date: End of July / Beginning of August
EUR/USD Daily Chart Analysis For May 13, 2022Technical Analysis and Outlook:
Euro has completed Inner Currency Dip 1.050. With oversold sentiment, it may make a run back towards the completed Inner Currency Dip mark and employ it as a new resistance level; however, the Next Inner Currency Dip 1.031 is inescapable.
S&P 500 Daily Chart Analysis For May 6, 2022Technical Analysis and Outlook
The downtrend as specified in Daily Chart Analysis For April 29, 2022
to Major Mean Sup 4070 is firm and concrete. Down movement continuation to Next Outer Index Dip, 3990 must obsolete the Major Key Sup to continue - we will observe and track this the following week's session. Interim bullish moves are possible within the current downtrend.
EUR/USD Daily Chart Analysis For May 6, 2022Technical Analysis and Outlook:
The rebound to Mean Res 1.065 is completed as specified Daily Chart Analysis For April 29, 2022. The next down move is marked as Next Inner Currency Dip 1.031, and the future Outer Currency Dip 0.9765. Bullish movements are possible within the current downtrend - trade appropriately.
Bitcoin (BTC/USD) Daily Chart Analysis For May 6, 2022Technical Analysis and Outlook:
Bitcoin is looking very bearish at this point. The current path is flagged to Inner Coin Dip $31,660 and Outer Coin Dip $30,800. A possible significant rebound is anticipated upon completion of Inner Coin Dip $31,660, while Key Sup $35,150 might offer transient upside movement.