Every investor should ask themselves, are we in store for the usually 20-30% correction?
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
I have the most recent corrections in history highlighted, their reasons listed. > It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term stocks go up.
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Looks like the May Rally will not be happening. Maybe fall down to the -30% support levels is next. Don't panic sell minus 25-50% positions just to buy them up a few weeks later at 10% higher than current levels. Buy a Case of beers and enjoy time with your friends. This market is just depressing, distract yourself, go workout, enjoy a nice dinner. I know ill be focusing on F1 Miami to distract myself from this wild capitulation.
You believe that next week will be long? And until what point?
FortunaAlgoAnalytics
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@wajih_alfeghia, I don't think all of next week will be in the Green. It might bullish... but I think we need a positive news event, for the market to hold onto. We could find support above or around the 13,000 level. Think we will see a bullish May or at least a rebound. I don't believe we will see a long term hawkish FED in the May meeting. Maybe rate hikes to 1.5% long term.
I think we will bounce to 15,000 level and then down to 13,500 and back up to All time highs after summer into Q3.
@wajih_alfeghia, A great minds thing a like. Looking to take a good bit of profits at those levels. Then see what the market does, the volatility is great but can punish those without enough dry powder to buy the dips.