Time to sell everything globally. The HUGE BUBBLE is going to collpase finally! Let's go back to reality. Bye Bye
I have written 2 session in advance! The only one out of there. People still believes to fairy tales. Watch out to reality. Trade is active. Huge decrease in front of us. Thank you. Short everything as much as you can!
1st: 23200 /small rebound
2st: 21600 / small rebound
5st: 18000 final target for end of summer/end of year 2018
As predicted at 23300 ( I supposed 23200 ) Dow Jones has rebounded. However, It is just a way to call for new chickens! Guys.... only one direction: SHORT!
Below 23300, we will see a stronger movement downwards. Keep the position. There is no other way around if not SHORT!
Hi Simeone and Congrats for your early Short analysis !!!
A question: what is your opinion on the FTSE MIB ITALY ?
It holds for now but it seems ready to accept its course and start its down acceleration.'
@winstox, HI Winstox, Thank you for compliments and your question. I am following FTSE MIB closely, since I am Italian. That said, so far, our Index seems to have a relative strength superior than other European Indexes. However, since the index is full of Banks, I expect to see a major fall possibly after dividends seasons. In Germany, Commerzbank and Deutsche Bank are collapsing, and this might take down even Italian Banks, even if they have better balances that the two Germans. F.e. UBi Banca is now ready for a short. We might see Our Index going to test 18500 in summer.
@SimoneSiesto, Tks for your comments. I live in Greece (I am Spanish) but a large part of my family is Spanish/Italian and lives in Roma therefore I follow very closely the MIB. Very interesting what you said about the dividend season in Italy. My opinion is that markets continue to be vulnerable and technically more downside is expected and when US Indexes start to accelerate again their downtrend they will immediately affect the rest including the MIB. I have a 20500 target as a start and waiting for it. For USA what is critical is the testing of the 200 MA. Once broken it will initiate automatic sell signals. Finally VIX should spike, it still remains low (23) and a test of 40+ is very probable.Have a nice week and keep on the great analysis. You were shouting about shorting when others were still looking for new highs.
@winstox, Thank you for your nice words. Next days are crucial to understand what direction the American market will take. In any case, all the biggest American companies like Facebook, Amazon, Apple, Netflix, Tesla etc are in a bubble, with incredible evaluations. So I expect to see them falling down much more. Amazon is the perfect case. P/E = 330. It is absolutley absurd. If it is not a bubble....how do we wanna call it? Have a nice week!
@SimoneSiesto, FAANG stocks are overvalued, I agree with you. For me FB target zone is at 140-135$ - AAPL at 160-150$ - AMAZON and NFLX (the worst) with targets 950-900$ and 200-190$ respectively and finally GOOGLE which has the best projections, my down target is now at 970-950. For the DAX I maintain a target around 11600-11500 while the MIB in ITALY resists and it is quite impressive...