Marketcrash
Massive Double Top? What's next? You decide.Hello everyone,
In my opinion, it's good to be honest with yourself. And if I am being honest, it appears that the S&P 500 may have just printed a massive double top signaling a potential bearish trend in the foreseeable future. Now before you scream chicken little, hear me out. With what's going on in the world there is a lot of uncertainty, and the market does not like uncertainty. If you consider the politics, the unrest, the extreme overvaluation of stocks, the pandemic, the trade wars, the low-interest rates with rising inflation, the devaluation of the USD, and recent stock gurus selling off massive swaths of their positions, like Warren Buffett who recently sold 11 positions, it definitely appears there are a lot more negative factors than positive. If you look at the Warren Buffet indicator, it shows that the total market cap of the stock market is more than 2x the size of the US GDP (209% to be exact). With this factored with the recent announcement of the capital gains hike from 15% to 43% as well as the crypto sell-off where you saw big names like DOGE coin and Bitcoin lost about 25% of their value in the blink of an eye, there are a lot of things to be concerned about. Not to mention that due to the low interest rates, home prices are at all-time highs with a massive shortage of 11 million single-family homes we are entering a massive housing bubble, which may make the 2008 housing market crash look like peanuts. Could this be the perfect storm? I hope not. And this is coming from someone who has a long-term bullish sentiment. We need to be honest here. Is anyone else seeing this or is it just me? And this is just scratching the surface of something that is much broader and worldwide. What will it take? Another COVID resurgence? War? Time will tell.
SPX500 - ED with little throw-over The market has been bunny jumpy and funny over time. If this will confirm and the grand super cycle will end we will see some major correction to the 1800-2200 area. Who will trigger it? Btw retailers have too much fade on the FED, pity. At the time market is very overbought and in the weekly RSI you could see huge divergence on the weekly chart and low volumes but the market keeps going. After all, at least we should correct it very soon and we will see some movement down. If not, then later consequences will be much harder.
Feel free to comment
Good luck guys and stay positive!
SPX 500 DONE??!As stated before, the recent sell off was nothing but a corrective wave and I was calling for buys when everyone was selling..
I am not saying the market will collapse now but if does then it makes sense and there is enough evidence to support it! On the other hand, more ATH's still makes sense too! It's all about assumptions, biases and having a set up.
My current assumptions:
1- EDT and we are finishing the last Wave. Assuming that means that Wave 1 here is the longest and hence Wave 5 must be shorter than Wave 3 so it cannot under any circumstances touch 4,021.4!!!
2- Wave 5 (primary degree) = 1.618 Wave 1 (Primary Degree)
Disadvantage: Market can still go higher to 0.618 of Wave 1+3 to 4.1k
Invalidation: 4,021.4!
Short term: It can react to this major level and retrace to 3,872 so it can be used as scalping :)
GOODLUCK!
Close Bitcoin Trade (TP SMASHED)Good day guys! I am now closing my bitcoin long positions from 52526.72, 52579.78, 52699.91 & 52762.98 level. We do see this trade going higher, because we noticed PAYPAL just added crypto to the checkout feature on their platform. This is huge! Again, it is always good to book profits and look for the next set up. We believe in actually withdrawing from your accounts not being excited how high price got. This trade did wonders and we know that those who took this signal from us profited tremendously. Be sure to like and comment below on your thoughts and/or if you profited from our analysis. We do appreciate you for checking out our post and remember, we will see you on the other side.
Rodrick (CEO)
Third Eye Traders
It's time to ZOOM OUT and get REALPlease have a look at this chart. Scroll all the way back to 1999.
At present day we are very far above the 50d moving average. It's frightening how high we are.
Bearish divergence from Jan 2020 to present day.
Bearish divergence in 2018, leading to a 20% retracement.
Bearish divergence in 2007, leading to the global financial crisis.
Bearish divergence in 1999, leading to the tech/telecom bust.
History will repeat itself, I think. We are currently in a very worrying position. Look at what these bearish divergences have shown in the past. To return to 50d MA levels would mean a 13% correction for S&P 500. If we fall below that, we should start considering a full blown crash/bear market.
"MOMENTARY" Bitcoin DOOMS DAY Scenario - 6 DAY ChartA friend sent me down the road of looking at the spider charts again, and and kind of spotted something on the 6 DAY Broad View, that has nothing to do with the current situation of course; but it is intriguing, as well as frightening perhaps to some who don't protect their assets with Stop Losses...
This is somewhat of a "what IF" type of scenario... Against some very real possible realities.
On the more grand scale of things with regard to price supports, we really only have a few major supports to catch BTC if a major market crash happened, which many are saying is on the near horizon...
- Even looking at the VPVR; the ranges of support diminishes greatly beyond 12k
- The few stops along the way that I can spot on this chart are:
50k
42k
19k
12.4k
So be ready to by some of that 12k BTC if the markets make a nearly 400% dump.
You will have to act fast as the Fire Sale will only last for minutes or hours at best. Haha!!
I just had to post this for posterity in case it ever happens, so I can say I told you so. LOL!!
Remember, keep your friends close and your stop losses closer!!
CryptDude (CryptDollar)
MARKET CRASH - JUNE 2022 ?Hello everyone
I was doing a research about market crashes in history (what was the reason, what happened next and how it was solved) ...So I read many titles about financial instruments in US (Loans,credit cards,mortgages etc) ...yeah and those freaking BONDS...we have two types of bonds - short-term and long-term..and here comes the trouble. They should go in the same direction. That means if short-term bonds(STB) rise,then long-term bond yields (LTB) should rise as well...so what is wrong ? Every time in history before a market crash these STB and LTB yiels were going in different directions - STB were rising whereas LTB were falling. We can talk about divergence.
Crash Confidence Indicator is in it s highest value since latest market crash in 2007 - that means that many investors believe that market crash is not going to happen... the same scenario was right before 2007 crash
Citi group‘s indicator about euphoria or panic in the stock market is in euphoria sector and is steadily rising
Another indicator..VIX ..is down 28%...that means that fear has crashed
Stocks are expensive relative to 10-year average earnings. We are above number 24 which is much higher than the long-term average of 16.
Relative to GDP,the US stock market looks very expensive
Now look at the chart below. As you can see there is the VIX indicator, SPX (S&P500 index) and 10-y Bond (blue line).
I found interesting correlations between these instruments. As you can see, before every market crash we had scenario when VIX fell and Bonds rised. Afterwards bonds lost their value,VIX skyrocketed and SPX and economy crashed. These days we have a lot of "positive" sentiment in Bonds and we are grateful that VIX is falling...really ? look at the chart...VIX is falling and bonds are rising. From history performance I expect an upcoming market crash in 2022...and in my personal opinion I expect this carsh in the beginning of June.
Take it serious, I am not joking and I put a lot of my time into this research.
Thank you for your time and good luck !
MARKET CRASH - JUNE 2022 ?Hello everyone
I was doing a research about market crashes in history (what was the reason, what happened next and how it was solved) ...So I read many titles about financial instruments in US (Loans,credit cards,mortgages etc) ...yeah and those freaking BONDS...we have two types of bonds - short-term and long-term..and here comes the trouble. They should go in the same direction. That means if short-term bonds(STB) rise,then long-term bond yields (LTB) should rise as well...so what is wrong ? Every time in history before a market crash these STB and LTB yiels were going in different directions - STB were rising whereas LTB were falling. We can talk about divergence.
Crash Confidence Indicator is in it s highest value since latest market crash in 2007 - that means that many investors believe that market crash is not going to happen... the same scenario was right before 2007 crash
Citi group‘s indicator about euphoria or panic in the stock market is in euphoria sector and is steadily rising
Another indicator..VIX ..is down 28%...that means that fear has crashed
Stocks are expensive relative to 10-year average earnings. We are above number 24 which is much higher than the long-term average of 16.
Relative to GDP,the US stock market looks very expensive
Now look at the chart below. As you can see there is the VIX indicator, SPX (S&P500 index) and 10-y Bond (blue line).
I found interesting correlations between these instruments. As you can see, before every market crash we had scenario when VIX fell and Bonds rised. Afterwards bonds lost their value,VIX skyrocketed and SPX and economy crashed. These days we have a lot of "positive" sentiment in Bonds and we are grateful that VIX is falling...really ? look at the chart...VIX is falling and bonds are rising. From history performance I expect an upcoming market crash in 2022...and in my personal opinion I expect this carsh in the beginning of June.
Take it serious, I am not joking and I put a lot of my time into this research.
Thank you for your time and good luck !
BTC/USDT 3 Hour Chart Fall ProjectionOk guys I think this is where we finally see our pullback. Notice the artificial pump to diverge from the original fractal . Who knows? Maybe its nothing, but this is what I see and I wanted to share with my followers so they were aware what may occur here. Covered in Bulkowski's Classic Trading Patterns under the trend line chapter he mentions a piercing of a diagonal trend line after 5 touches. The price action then should come up and retest the trend line and get rejected just as it was last year. Only time will tell.
If you agree throw me a like and follow me for more unique ideas and concepts that keep you in the gains. Much love
DXY - Strikes Back, The Return of Safe-HavenThe dollar climbed as pressure stayed on bonds, with the yield on the U.S. 10-year government bond hovering at its highest levels in a year after Federal Reserve Chairman Jerome Powell expressed little to no concern about the recent spike in yields.
The U.S. dollar benefits in a few different ways. Powell’s confidence in the U.S. economy and its ability to weather the increase in rates is good for the U.S. dollar. A higher more attractive yield also draws demand for the greenback and most importantly, the slide in stocks drives investors into the currency’s safety.
Stocks crashed in return as well as Bitcoin. If the DXY moved up, I think everything will cool off for a while.
Disclaimer: The information presented is NOT financial advice.
Bullish on TDOCTELADOC is looking good after the companys stock crash 30%. TDOC is slightly under the 200 SMA. Also, RSI and MACD are showing overbought momentum meaning a great short to long-term trade. I think we will see a bounce back as the stock has still a wonderful future with a lot of growth and imagination to make new tops.
🩸 🐖 "Bulls make money, bears make money, pigs get slaughtered"Hi guys after Friday rout there are new developments in stock market indicies. Last week price action on AMEX:DIA formed bearish reversal pattern buying climax above upper megaphone pattern line at the top of rising wedge. This rising wedge is 5th Elliot wave which is signaling trend will reverse soon.
As you can notice in chart last week realized volume was relatively big and volume week ago last week was rather small. Thats the signs that bears taking control significantly in recent days.
I expecting this week breakdown bellow megaphone upper line and begin forming corrective wave (a).
If you like the idea, do not forget to support with a 👍 like and follow.
Leave a comment that is helpful or encouraging. Let's master the markets together.
Malaise for > quarter: Telecoms, Fast food, and Consumer staplesThese important sectors have not been booming for over a quarter (no Robinhooders around these sectors, and not worth a Reddit meme) -
- Telecommunications: T, VZ, TMUS
- Quick service fast food restaurants: MCD, YUM, WEN
- Consumer Staples (ETF is XLP): household products PG, CL, CLX: food MDLZ, GIS
$TQQQ Market Correction DDThe market was extremely bloody last night, where we saw $TQQQ trading at highs of $98.07 at one point and subsequently closing at $87.90. I believe this can be attributed to the rising bond yields trend we are currently witnessing, particularly in the 5 year and 10 year treasury yield.
Between the start of February 2021 to February 24th, the 5 year treasury yield has been steadily increasing at an average of 0.01 to 0.03 daily, while the 10 year treasury yield has been increasing at an average of 0.01 to 0.04 daily.
However, yesterday on the 25th of February, this skyrocketed. The 5 year treasury yield shot up by 0.19 from 0.62 to 0.82, while the 10 year treasury yield shot up by 0.16 from 1.38 to 1.54. Typically, when the 5 year treasury yield goes beyond the 0.75% threshold and the 10 year treasury yield goes above the 1.50% threshold, the stock market tend to sell off in reaction to that. This huge one-day surge in yield return as a result of a lack of interest in bonds likely exacerbated the sell-off.
I believe that this correction is extremely healthy in a market where a lot of the valuations are rather high; and this is unlikely the "huge market crash" or the "bubble pop" premonition that many investors are fearful for, especially considering the fact that a huge $1.9 trillion stimulus will be incoming.
However, it will undoubtedly do us good to remain cautious and keep some cash on the side because in the short-term, the hardening of yields will likely lead to some volatility - which means more frequent dips for you to average your positions; but more importantly, eventually, the consequences of printing these money will likely catch up to us in the form of record-level inflation and interest rate rise, possibly killing the bull run - and we need to be prepared for it.
For now, I expect growth from the support zone of this bullish channel back to the $100 to $110 range.
This is not investment advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.
Market Crash, Correction and Reversion to the Mean?The crash is near and I am curious what crypto will do this time. The market behaves in waves and parallel between waves can be used to predict future instances. That doesn't mean it will come true. However, it is necessary to be cautious and balanced between greed and fear.
The reason for this massive correction will be -
Three O's:
1) Overleveraged
2) Overhyped
3) Overbought
In short, it will be a disinflationary bust.
Take care!
VIX is on an Upward momentum. I know that most people hate Bearish analysis, BUT I have to share this with everyone
VIX - is the volatility index of the stock market. The higher it gets the lower the (overall) market gets. It basically indicates uncertainty in the Market.
This graph above indicates that the market might continue to go down. As you can see the VIX is getting ready to set a higher high.
We might see the market continue to go down, as this new trend is not over yet.
Monitor Bond Yields - Feels like 1987?Hey there, thanks for reading my idea! This isn't financial advice. Remember to do your own DD. Investing is risky.
This is connected to my "Feeling Overextended?" idea which can be found here .
An important metric to watch when determining whether a recession is imminent is the inversion of the Treasury bonds yield curve. Most specifically, the 3-month, 2-year and 10-year yields. The inversion occurs when the shorter-term note yields begin to rise and exceed long-term note yields.
Ideal bull market conditions would have higher yields in long-term notes and lower yields in short-term notes. Higher long-term yields forecast economic growth where the Government can be expected to be able to pay back the bond. Typically, higher yields are associated with higher interest rates, which poses as an investor risk, hence the higher yield premium. Meanwhile, higher short-term yields forecast economic downturn as investors look for shorter time horizon returns to minimize risk.
We have to remember that the Fed is expanding it's balance sheet through QE by buying certain assets such as mortgage-backed securities and TREASURY NOTES from the market, and J. Powell is confidently using his tools to prevent a market crash. By buying Treasury notes, the Fed can manipulate yields to create a positive outlook of the economy through a "positive" yield curve, rather than an inverted yield curve. In fact, the Fed has accumulated approximately $3billion in Treasury notes since the Covid crash. (source here , scroll down to the Fed Balance Sheet graph.)
Is it recession time yet according to the yields? Maybe not yet, but once the 3 month and 2 year yields begin to rise, this should place pressure on the 10 year yield to fall., setting the stage for the next downward cycle.
Is EUR/GBP indicating the S&P500 Crash ?The last test of the weekly trendline in EUR/GBP was the March 2020 Crash, thats when EUR/GBP spiked up 1200 pips within a few weeks.
Now price is moving close to the Trendline again, could this be a indication for the S&P500 Crash, i think so.
Those that follow my Charts know that im looking for a Market crash in the next few moths, it seems like This EUR/GBP trendline could be a Indication for it.
This correlation can be seen in most EUR pairs, i also posted a important EUR/AUD chart about this a few days ago, all of them give the same indication, they could be Indicating the Market crash from the technical side.
This proofed to be working in 2000 / 2008 and March 2020, will it work again? Lets see.
When does the market crash, VIX?Everybody would like that know that. Although VIX is in principle a forward looking index it is a poor predictor. VIX volatility has in fact been shown to be highly correlated with backwards looking volatility, not future volatility. So let us take a look at the past then, a full 13 years full of different kinds of crises and crashes.
As can be seen from the chart, each significant spike (to the level of 50 or above) has been followed by a lenghty period of cooling off. These periods are characterized by a series of lower highs forming a descending triangle with the support as the foundation. Each descending triangle in the past has been formed on a foundation on a different level. The cooling off period has varied from 1,5 years to 4 years.
The level of support of the present triangle is clearly elevated as compared to the earlier ones. Moreover, there has been several lower spikes within the past year. These factors can indicate that the market is still a bit squirrelly, it is keeping itself on its toes, so to say. However, each event so far has resulted in a lower high in VIX, so cooling off is in the process.
So what is VIX telling us then. I would say it tries to tell us that these things take time. Although there seems to be all kinds of bubbles, we can easily continue with the present bull market practically the whole year. That is of course if nothing dramatic happens and we continue making lower highs in VIX. Towards the end of the year the probability for the breakout increases and the bubble burst is inevitable. Then there will be ”blood on the streets”.
Take care and trade safe
Cheers, Whoop