wildcreamlife

Black Monday for S&P 500 or coming close to Black Tuesday

Short
wildcreamlife Updated   
SP:SPX   S&P 500 Index
While big investors start to jump out of the train they kick off a bearish move... Why?

The answer is harder than you think, but at the same time it has logical decision. Since some months ago I shared with some friends about this risk, but the market just went higher over and over.

You know I like to apply maths to my trading, but at the same time history, actually economy is a social science, so as history repeats itself economy do as well.

Watch out, I'm not talking about will happen tomorrow or next week, but is something to keep in mind...

A crush could come pretty soon, because factors are more than one.

1. History
2. Currency War
3. War as the worst way we know
4. Real Correction

1. History: I already said history tends to repeat itself over and over. In 1928 everyone was very enthusiastic and even taxi drivers and shoeshine boys bought stocks without any preliminary knowledge, except by some conversations with Wall Street's people. Economy was growing to massive pace, but with an overpriced market. Calvin Coolidge as pro-business President, he went for Anti-regulation and TAX CUTS. Sounds familiar?.

2. Currency War: Currently happening.

3. War as the worst way we know: War is absolutely possible if Trump makes a mistake with North Korea, I hope not, but if definitely will hit American economy and with less budget for tax cuts, less money for government.

4. Real Correction: Real correction is based on cyclical economy, in my case I support the cyclical adjusted price earning ratio, which is coming higher from last 10 years.

However, I love America and I hope to be wrong.


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Trade closed: target reached:
The First Target Reached.

Learn how to beat the market as Professional Trader with an ex-insider!

Have a good Trading Week!

Cream Live Trading, Best Regards!

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