I decided to apply the Wall Street Cheat Sheet to a chart of the S&P 500 during the Dotcom crash. It is impressive that it still works and holds so many lessons. The question you should ask yourself is, where are we now? Let me know your thoughts in the comments below. ------------------------------------------------------------- Understanding the implications...
Quad-witching is a phenomenon unique to the stock and options markets, occurring four times a year. It captures a flurry of activity sparked by the simultaneous expiration of four types of derivatives contracts: stock index futures, stock index options, stock options, and single stock futures. The third Friday of March, June, September, and December marks these...
In the movie Limitless (2011), Eddie Morra (Played by Bradley Cooper) takes a mysterious pill, NZT-48 , that turns him from a struggling writer to a financial wizard . The pill unleashes 100% of his cognitive power, transforming him into an intellectual powerhouse. About 40 minutes in, there is a scene. Hank: "Pattern recognition. That's your snake...
General Electric's multi-year bear may be showing signs of slowing, while the trend is still down the bulls are starting to sniff around. Getting close to it's 2009 low and at these prices the Dividend Yield of 4% is looking pretty good. Note the diverging indicators in the lower pane suggesting gathering strength in price action. Might be worth a longer term...
I am currently preparing a deep analysis, but it is taking some time, and the market is plummeting. So many indicators and consequences to articulate. I will release it tonight or tomorrow morning. Suffice to say, it does not look good. Even MOSES is starting to be bearish. The market is like the famous quote from Shrek "I am a Donkey on the edge". If you want...
Some jokes are funny, and some memes are funny. Some are not. Loose monetary policy has left the economy awash with cheap credit, reminiscent of the roaring 1920s. Cheap cash has fueled wild speculation culminating in cry<ptocurrency and NFT bubbles and scams. Dogecoin is for me the perfect example of irrational crowd behavior. You might be thinking, wow...
Well, the case against a Bull market anytime soon is mounting up. Surprisingly Covid does not even make the list. 1 Stimulus Stopping 2 Interest Rates Increasing 3 Supply Chain Pressure 4 Inflation 5 Commodities Surge 6 Potential War in eastern Europe I sold all my ETF investments 4 weeks ago, actually on the right of the chart after the 7% catastrophe flag...
It has been an amazing 2020/21 in the markets, stimulus, free money, memes, crypto, NFTs, a 142% Nasdaq 100 rise from March 16, 2020, to Nov 29, 2021. I have traded through 3 major crashes, 2000, 2007, 2020. I can now hear the gentle popping of bubbles through charts. How? I have developed indicators and backtested systems with TradingView to tell me when they...
For those of us old enough to remember the glorious movie, The Godfather III, there is a thrilling scene where Michael Corleone (Al Pacino) explains... “Just when I thought I was out, they pull me back in.” You are Don Corleone in this market. You are positive; you are by default a bull; you want the market to go up. You have fear of missing out (FOMO) if the...
I have been bearish since Feb 7, 2022, with a long-term price target of the pre-Corona high, as evidenced in the attached chart "Sound of bubbles bursting" Feb 18 . I have been using 3 month dated Near the Money Puts on the QQQ. But what I wanted to share was the use of Gann and the excellent Candlestick recognition in TradingView. I was looking at tripling...
Crypto and Bitcoin - ACDC - On the Highway to Hell A ll C rypto is D eclining C urrency (ACDC) No stop signs, speed limits Nobody's gonna slow me down Like a wheel Gonna spin it Nobody's gonna mess me around Hey satan Payin' my dues Cryptocurrencies have been gaining in popularity in recent years, but there are a number of reasons why they are a bad...
Scene 1 Darth Powell summons the legends of the past to formulate the plan to fight the Omicron and Inflation insurgence. Brigadier Bernanke, General Greenspan and Veteran Volcker report for duty. “We are at an event horizon, what should we do?” declares Powell. “Pretend it isn’t happening”, says Greenspan “Bailout everything, print more money,” says Bernanke “I...
We may be at the start of a market panic. ---Start Scene Part 1--- Omicron has arrived to meet "nontransitory inflation" in a romantic Italian restaurant for dinner. Darth Powell has also arrived to slay the beast of inflation. The ensuing scene might represent a scene from Tarantino's Kill Bill movie. ---CUT Scene Part 1--- In any case, I sold all my holdings...
My good friend Moses emerged from the cloud and declared “I have beaten the Nasdaq 100 by 1,100% over the last 24 years.” I double and triple-checked his numbers, and goodness me he was right. “How did you achieve that Moses!” I exclaimed. “It was achieved using the application of mathematics and technical analysis” Moses retorted. “But what did you do...
The start of the Covid-19 pandemic kicked of a volatile time in the stock market with a 34% market decline in 24 days. This marked a clear new leg in the market and allowed one to start an Elliott Wave mapping. In this chart, I begin with the classic A-B-C correction wave as the market declines and follow it up with the 1-2-3-4-5 impulse wave of the new Bull...
It is absolutely normal to worry about the next stock market crash. You probably have a portion of your life savings wrapped up in your retirement fund, which is tied to the success of the stock market. Should You Fear The Next Crash? Except for the perma-bears out there, no one loves a stock market crash. But the fact is Governments, Central Banks and...
I want to discuss stock market bubbles versus new highs and bull runs. Many of you, I am sure, are concerned about the current market climate. Economies in recession, industries on the brink of disaster, high unemployment, Covid, and a multitude of other issues. But Mr. Market does not care about your worries; Mr. Market cares about the availability of cheap...
John Maynard Keynes, described in his “General Theory of Employment, Interest, and Money," animal spirits as the human emotions that affect consumer confidence. Despite our animal spirits, Covid-19 has an animal spirit all of its own. COVID-19 is literally “going viral.” The human race is doing a great job of reducing the death toll. But that will not stop...