What Could be the possible target for NASDAQ 100???
In this analysis, I will try to cover the different possibilities for NASDAQ 100:
Since we have not seen a lower low in the weekly chart, we can assume this could be a correction!
Scenario A:
Closing below the bullish channel could lead to a decline equal to the width of the former bullish channel:
In 5 weeks we will see another 8% decline (total 16.5% from all-time high)
Scenario B: Rounding Top, another 5.4% decline in the next 4 weeks, Total correction 14.2% from the all-time high:
It is really hard to differentiate between a correction and the early Bear market..!
But I think George Soros's experiences could help us!
First, A Joke:
It is an old joke that the stock market has predicted seven of the last two recessions.
Then an expensive mistake:
The crash of 1987 came just as unexpectedly as the crash of 1929. There had been a general awareness that the worldwide boom was unsound and unsustainable, but few people got their timing right. I was as badly caught as the next fellow. I was convinced that the crash would start in Japan, which turned out to be an expensive mistake.
Fed's role:
In retrospect, it is easy to reconstruct the sequence of events that led to the crash. The boom had been fed by liquidity; it was a reduction in liquidity that established the preconditions for a crash. In this respect also 1987 resembles 1929, it will be recalled that the crash of 1929 was preceded by a rise in short term money rates.
The real economy was stimulated by credit expansion. Why should it not be negatively affected by credit contraction?
And Finally, his most important lesson:
In my financial dealings, the discovery of error would often present an opportunity to take whatever profits I had made from my flawed initial insight or cut my losses if the insight had not yielded even a temporary profitable result. Most people are reluctant to admit that they are wrong; it gave me positive pleasure to discover a mistake because I know it could save me from financial grief.
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Since we have not seen a lower low in the weekly chart, we can assume this could be a correction!
Scenario A:
Closing below the bullish channel could lead to a decline equal to the width of the former bullish channel:
In 5 weeks we will see another 8% decline (total 16.5% from all-time high)
Scenario B: Rounding Top, another 5.4% decline in the next 4 weeks, Total correction 14.2% from the all-time high:
It is really hard to differentiate between a correction and the early Bear market..!
But I think George Soros's experiences could help us!
First, A Joke:
It is an old joke that the stock market has predicted seven of the last two recessions.
Then an expensive mistake:
The crash of 1987 came just as unexpectedly as the crash of 1929. There had been a general awareness that the worldwide boom was unsound and unsustainable, but few people got their timing right. I was as badly caught as the next fellow. I was convinced that the crash would start in Japan, which turned out to be an expensive mistake.
Fed's role:
In retrospect, it is easy to reconstruct the sequence of events that led to the crash. The boom had been fed by liquidity; it was a reduction in liquidity that established the preconditions for a crash. In this respect also 1987 resembles 1929, it will be recalled that the crash of 1929 was preceded by a rise in short term money rates.
The real economy was stimulated by credit expansion. Why should it not be negatively affected by credit contraction?
And Finally, his most important lesson:
In my financial dealings, the discovery of error would often present an opportunity to take whatever profits I had made from my flawed initial insight or cut my losses if the insight had not yielded even a temporary profitable result. Most people are reluctant to admit that they are wrong; it gave me positive pleasure to discover a mistake because I know it could save me from financial grief.
You can see the most important support(green line) and resistance (red line) levels.
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.