I go over all of this in the video report in the links below.
The bears took it too the bulls in early trading. But once the 200 dma was tested and then broken, the bulls decided to try and fight and brought price back above the panic line. Rallies are allowed and I wouldn't be surprised to see the bulls try tomorrow. But when we are in this type of pattern "Woody Dorsey's Kill Zone and Black Hole" often the market doesn't let the bulls out or the bears in. This is a very rare pattern and when it kicks in, whether we bounce first or not, it will surprise many how fast we fall.
I am not calling for a 50% drop in the spx from here. I personally think that is just nonsense and if we are in a bear market for the next 3-5 years, there will be a lot of points made trading the long side. Sentiment will give us a clue when to cover shorts and if history is our guide, the majority will be shorting with both hands at that low. They become the fuel for short squeezes. But in a bear market, these bounces will be fast, but fail at important resistance levels. But the crazy part, we will see the majority switch from bearish to bullish and that is when the short term top will kick in. Even if you are correct on your direction, the market will make you think you are wrong-and why so many lose money, even when right our their direction. Take thing one swing at a time and forget about 3-5 year picture-it is useless. G-
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We cover BTC and ETH and are currently long right now in BTC and up 8.93%. Got a question for you if you don't mind. Do you guys think there is a correlation to SPX and Cryptocurrencies that the larger entities are trying to control? Maybe, in other words, get people excited about crypto since it's trading opposite of the SPX right now to shift the perspective of crypto? Just curious about your thoughts since you do such a good job covering this. Cheers!
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Can The Stock Market Be Predicted? Below are a series of predictions we made from September. Take a look and you will see, yes they can and nobody does it better than Woody Dorsey!
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Comment: 09/13/19 Sentiment Timing Report MARKET TIMING: A failure was expected in August. The expected correction is profiled to last into near 9/25ish but, “This Fall may see trading opportunities both ways.” How the market behaves into 9/25ish there will tell us all a great deal about the larger context. So far from the 8/29 High, there were 7 days down which have been followed by 5 days up. While it feels like the market is strong it really has been in a sideways price/time pattern. What fits best now is for another 6-8 day decline which would make it a somewhat symmetrical compound correction into the preferred low date. Under that pattern, today would be the last upside day.
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10/16/18 Sentiment Timing Report
MARKET TIMING: A tactical trading low was ideally due last week and came in on 10/11 synchronous with the 0% Bullish. This week is messy with an upside bias due next week. Given the expansion of the range, it may all amount to not very much: “I still foresee a notable relief rally in November. That may be followed by more weakness than anyone expects into year end.” The code is for a nominal Recovery near 10/26 and, post-Election, engineer a decent upside episode into Thanksgiving followed by perhaps surprisingly robust downside in December. These codes may morph and become more, or less defined, so be aware of that. These are tricky times and “loco” maneuvers can occur.
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February 14, 2019
Nominal tactical weakness has been due into 2/22. Now, to reiterate, “nominal tactical weakness” is not a “Sell” signal. It is just the timing profile. Again, as noted: “The Interim profile is still Bullish.” The December Low was excessive, and the rebound is becoming excessive too. If a corrective range is forming, another or, several 2-3 day declines may occur over the next two weeks. Now, the next nominal trading high is due near 4/10ish. That does not mean stocks are just going higher from here to there by any means. It makes the most tactical sense for stocks to correct or to become congested for a while. • Near Term Diagnosis: Sentiment is 83% Bullish today following a relatively rare 97% bullish yesterday. These are clearly cautionary. • Interim Term Diagnosis: The Interim Trend still allows for recovery rallies, by fits and starts, into at least early April or perhaps even into June.
We cover BTC and ETH and are currently long right now in BTC and up 8.93%. Got a question for you if you don't mind. Do you guys think there is a correlation to SPX and Cryptocurrencies that the larger entities are trying to control? Maybe, in other words, get people excited about crypto since it's trading opposite of the SPX right now to shift the perspective of crypto? Just curious about your thoughts since you do such a good job covering this. Cheers!