Momentum,the fuel needed to propel the stock market higher,
over a sustained long term time period peaked,.. almost a years ago
As shown by the Point and Figure Rate of Change ( ROC) Yearly Chart
(Included here for illustration), momentum in the market peaked
in January 2018, at the 2820 area in the S+P 500.
Rate of Change Chart shown here,
also reveals that the sharp decline in asset prices in late 2018, was both sharp,and dramatic.
Investors fled the stock market, for the relative safety of bonds and cash,
in a preservation of capital move,that also shows up in the massive liquidation of speculative margin debt in late 2018.
Also revealing is the sharp bounce back rally in stock market in 2019,
shows up as merely.... a small blip this far on the screen... on the Rate of Change Chart.
If stock market momentum has already peaked, the fuel needed to propel the rocket higher and rolled over sharply
what does that say about the long term quality, and risk/reward of the stock market at these levels... ?
To say that it's long term accident waiting to happen,
would not be an overstatement, in estimating it's true downside risk potential.
So the warning is out there. It's not hidden, so you can't see it
If you are taking advantage of the bullish price rise in the market in early 2019,
and you have those gains nicely tucked in,and illuminated on your brokerage statement this month,
just know when, and where.. to pull the trigger..,to get out.
Chances are, that the market is going to be very unforgiving,... if you don't.
THE_UNWIND
1/20/19
NEW YORK
over a sustained long term time period peaked,.. almost a years ago
As shown by the Point and Figure Rate of Change ( ROC) Yearly Chart
(Included here for illustration), momentum in the market peaked
in January 2018, at the 2820 area in the S+P 500.
Rate of Change Chart shown here,
also reveals that the sharp decline in asset prices in late 2018, was both sharp,and dramatic.
Investors fled the stock market, for the relative safety of bonds and cash,
in a preservation of capital move,that also shows up in the massive liquidation of speculative margin debt in late 2018.
Also revealing is the sharp bounce back rally in stock market in 2019,
shows up as merely.... a small blip this far on the screen... on the Rate of Change Chart.
If stock market momentum has already peaked, the fuel needed to propel the rocket higher and rolled over sharply
what does that say about the long term quality, and risk/reward of the stock market at these levels... ?
To say that it's long term accident waiting to happen,
would not be an overstatement, in estimating it's true downside risk potential.
So the warning is out there. It's not hidden, so you can't see it
If you are taking advantage of the bullish price rise in the market in early 2019,
and you have those gains nicely tucked in,and illuminated on your brokerage statement this month,
just know when, and where.. to pull the trigger..,to get out.
Chances are, that the market is going to be very unforgiving,... if you don't.
THE_UNWIND
1/20/19
NEW YORK