I feel that the Dow Jones is far over extended on value. Most of the stocks are running well beyond what earnings should allow. Now we have the Corona Virus effecting the globe much more than the news will admit. If China's economy was on the tipping point of collapse as some suspect, will this be enough to push them over the edge.
If China begins to collapse in to debt, how will global trade be effected? How about US bonds? Where do we go from here?
I have a bad scenario laid out and I would hate to see it happen. Remember that this is not trading advice.
Yeah this is exactly what I am thinking too. It's not just coronavirus though... Retail investing has pumped stocks to over-valuation, auto, retail, lending markets all fucked, USA debt to GDP is the highest it's been since the war, etc etc etc
ChartProphet
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@FaradayKage, I think we are on the same page for the most part. Coronavirus is a catalyst to set off what already should have been (a decline based on fundamentals). Check out this new chart
FaradayKage
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@lightloupes, I don't think a drop below the .5 fib is very likely but I agree with your general analysis.
gnosis7777
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Bruh... The Chinese population is 1,436,858,965. There are so far, 80 deaths 'attributed' to this 'virus'. Therefore, you have a mathematical probability of 1 in 17,960,737 of contracting and dying from this virus. At this point, you have a better chance of hitting the State Lottery than dying from it.
In contrast, there are 330,150,668 people in the United States. In fact, in 2018, 80,000 people died from the Flu (This range varies - in certain years 12,000 only deaths are recorded). Therefore, you have a mathematical probability of 1 in 4,126 of dying from the Flu while living in the United States.
Where's the hYsTeRiA OmGZ the FLU is goNnA kIlL us aLL.
Lmao. All this stupid virus proves is that the average human being has an IQ of 60 and is easily controlled and manipulated via social engineering. Now China (and potentially the West) will roll out even more governmental programs to insert themselves into the citizens private life to 'protect' them from the virus. Pure Orwellian B.S.
ChartProphet
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@gnosis7777, I dont necessarily disagree with you on how bad the death toll will be. But you might have missed the point. Perhaps you think that the Chinese economy is strong? It won't take much for this to be the BLACK SWAN everyone has waited for.
The real market makers control the media, they are liquidating I assume, and when the WHO then calls this a pandemic, whether it is or not, that will have a big effect.
Dont buy this reaction rally bro.
ChartProphet
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@gnosis7777, Hows your long on the DOW doing ? Buy the dip bro ;)
gnosis7777
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@lightloupes, Where did I say I longed the Dow? Oh right, I didn't.
ChartProphet
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@gnosis7777, I just assumed your math was so good with the coronavirus numbers that, with them being a farce, you would of course go long and bet against the average retard. But you joined them and went short?
ChartProphet
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@lightloupes, Or I should say "Average Human" as you describe