The night of Donald Trump being elected, Alan Greenspan slipped out of the watch party to buy massive amounts of stocks and made Billions over-night.
These candles are bigger than that night and resemble those of the 2009 rebound from the recession.
If you are short, I feel bad for you son, cuz there are jobs jobs jobs, and the train ain't done!
Check my link below for the Stop hunt we called back in December. Haven't changed the graph since then. Wonder why the media is silent now? hmmm.... they know the game, and you're the prey.
Well, let's review what happened in Nov 2016... The Great Donald got elected... a double bottom formed... a parabolic recovery ensued... a zigzag correction from Hell followed... now the Great Donald is evidently involved in a treasonous conspiracy. The tax break boost has been paid and factored in. Earnings already have been disappointing. IMO this market is headed for more punishment. Would be nice if this rosy picture plays out but I wouldn't bet on it. More likely is billions of dollars of pension funds and life savings going up in smoke when impeachment proceedings lead to a recession in 2020. Enjoy while it lasts!
@mattrl, It didn't happen! But, even if it DID happen, it wasn't a crime, and besides, I can always pardon myself, right?!
racethehare
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@DaddySawbucks, You'll always lose when you trade with your emotions. And from looking at your published charts, you are definitely losing pretty bad. Yikes!
DaddySawbucks
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@mattrl, Not doing so badly after all, as I learned not to overtrade and cut losses quickly when it moves against my position. Has definitely been disappointing, as I certainly did better before I learned to analyze, and just traded bullishly long positions for 20 years on 'feelings and hunches,' which worked well, LOL. I first discovered index put options in 1990 during the Kuwait invasion.
Fascinating instruments; but usually total loss leaders. Definitely not investment grade material- purely speculative gambling tools.
The markets fluctuate. I think in the long term you are correct and prices will advance again; that is the purpose of the marketplace. However I reckon we are in for a real bear market, perhaps later this year, perhaps in 2020 as uncertainty builds around the contested election. The bull is the longest on record going on over ten years. Improbable events do happen, but they remain unlikely... the bear will come.
For the near term, having retraced 50% of the decline from Sep 3 high, although further advance to 62%, 67% 76% or even 100% retracement is possible, a look back at 1987, 2001 and 2008 suggests that a double bottom may form within about 80 days of the first low price. Span from 24 Dec -> mid-March for a retest, followed by a stronger and really bullish bounce. You are correct as you observed in my charts, I expected this formation to occur sooner and was punished for it, but more importantly, missed a really great long opportunity.
A sharp decline will likely appear shortly, however; that is the normal behavior of the marketplace. Declines are necessary to advances, it is entirely natural.
Bulls want a pullback, as they want to buy at more favorable prices; bears want it because they make bank on it, lol. Pigs will still get slaughtered!
Good luck and thanks for this most interesting post!