Mood
VIX Cycle: “Shock-Reversal-1-2-3-4” Repeat“Shock-Reversal-1-2-3-4” is a model or cycle that occurred on VIX a few times since 2018. What is important is to recognize in which stage of that cycle the VIX is currently positioned. We see fear dropping as stocks are recovering since March as investors are less concerned about the potential risk-off because of QE and vaccine solution to coronavirus. But we know that markets are moving from pessimism to optimism due to different global events which are the main reasons for change in investors mood. Now we see optimism increasing, which is the first but important evidence for next important upcoming cycle. When reading the current model of VIX cycle then we shall be aware that there can be slightly more upside left on stocks, but then maybe in 2021, cycle may change with a jump in fear especially if VIX goes even lower. We think that “shock” is the next leg, and that increase in volatility may cause a new turn on stocks. However, this may not be the case just yet, maybe sometime in 2021, but we think that even if stocks will continue straight to the upside it’s much safer to join the ride after higher degree retracement.
USA - Bearish Outlook - Part 3This is the last of a 3-part US Outlook Analysis. The current post shows different mood indicators and all of them indicate the mood as negative. Top left is the Price/Sales Ratio of SP500 in a decreasing path that should trend to the most probable target at around 1.70. Bottom left is the Market Cap as a % of GDP and which is decreasing since 2018. Middle top is the consumer confidence index which is trending down and decreased already more than 30% since 2018. Middle bottom shows the volume of equity fund assets in relation to money market funds. The last value of this series is for the third quarter of 2019 and at that time this indicator level was the same as July 2008. Bottom right is DJI prices measured in Gold and it shows a long and short-term divergence with the index value. FOLLOW SKYLINEPRO TO GET UPDATES.
UPDATE 2 : The mood chart for Bitcoin and the restzoomed out a bit for your viewing pleasure.
Dec 17, 2018: "This started out as a joke about a week ago but I think it has proven to be a rather accurate description of the mood in #cryptocoin markets and how many of you probably feel when looking at those convoluted charts with hundreds of indicators - all showing what happened, none telling the future."
" NB! This chart can and will be used against you in coming days and maybe even months. Be aware of sudden changes. "
The mood chart for Bitcoin and the restThis started out as a joke about a week ago but I think it has proven to be a rather accurate description of the mood in cryptocoin markets and how many of you probably feel when looking at those convoluted charts with hundreds of indicators - all showing what happened, none telling the future.
NB! This chart can and will be used against you in coming days and maybe even months. Be aware of sudden changes.
BTC / USD Forecast - Bottom between 2018/11/25 - 2019/01/13BTC is in its final stages of the 12 months decline. We expect a bottom between the time frame around November 25th and January 13th 2019. Usually the Fibonacci fan is left earlier and prices dont follow until the end of the time target (in this case January 13, 2019). We expect a higher low around January 13, 2019. After January 13, prices have according to fibonacci, social mood and mass psychology the best setup for higher prices.
The target to the upside is already set for 2019.
Please be aware that time targets are more important than price targets in our forecasts.
Nevertheless, we expect the price target around 4.200 at the moment.
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AUDUSD Retracement off China DowngradeChina has recently been downgraded by Moodys. This should see AUD weaken. Why it didn't right away is beyond me...
Anyways, AUDUSD has retraced. USD is strong than AUD. AUD has a had weaker data recently, and the USD should strengthen a bit into the FOMC minutes. There are some large options expiring today at the .7500 and .7420 levels, this is something to keep in mind.