SHORT DJIA - potentially topped Fri 13th Dec 2019
As I wrote during the day last Friday (13th Dec) after the shenanigans of the orchestrated US-China "trade deal, I think the DJIA may have TOPPED.
This could easily be a buy the rumour sell the news scenario given the bloated hyperbole about "the deal" over the last 12 months from Trump.
The only remaining prop for this egregiously valued stock market is the FED liquidity pump over year end on REPO market concerns.
But I doubt that even that can save the market from the deteriorating fundamentals and sky-high P/e to growth valuations.
Ultimately reality/gravity will take over and 2020 is likely to see -25% in my main scenario which is a wave E (blue) of wave 4 (green) of broadening top pattern.
On a very short term basis on Friday I could see a reasonably clear five wave impulse pattern down form the high of the day which provides delineation for bears.
Shorting 28200 with a 100-150 point stop and an 8000+ point profit potential. Great risk/reward imo for coming 12 months.
This could easily be a buy the rumour sell the news scenario given the bloated hyperbole about "the deal" over the last 12 months from Trump.
The only remaining prop for this egregiously valued stock market is the FED liquidity pump over year end on REPO market concerns.
But I doubt that even that can save the market from the deteriorating fundamentals and sky-high P/e to growth valuations.
Ultimately reality/gravity will take over and 2020 is likely to see -25% in my main scenario which is a wave E (blue) of wave 4 (green) of broadening top pattern.
On a very short term basis on Friday I could see a reasonably clear five wave impulse pattern down form the high of the day which provides delineation for bears.
Shorting 28200 with a 100-150 point stop and an 8000+ point profit potential. Great risk/reward imo for coming 12 months.