The US stock market proved on Friday, that it can,and does,fall much faster,.at any moment,than most expect.
That jarring feeling of price dropping in a vertigo like plunge on Friday offers rather conclusive proof that the first crack in the market,. is in.
Evidence is also observed by many long time bears throwing in the towel in 2021 and turning bullish.
With the Vix resisting any attempts to put it under 20, during the run up to all time highs, the big money professionals who trade volatility were not sharing retails unabashedly bullish optimism for stocks especially visible in the continual desire by retail young traders to own and trade stocks priced under $5.00
My chart work has been targeting a major market turn next week between Jan 20-Jan 22,,which happens to coincide with the inauguration of a new US president.
My advise to you is to be as contrarian as you can be in this market. Stocks are way overextended,and are due for some kind of meaningful pull back.
However, keep in mind that important support was hit,and held, at S+P 3750 on Friday. Does that mean" the correction " possibly happened all in one day, and that it's over,because that's all the market will give up ?
Anything is possible in this market. A continued stock market blow off top, surprising even hard core market bears is definitely possible next week.
A "CycleTurn" does not mean that stocks have to go down. They might go up sharply,.. first. Keep that in mind. And then.. with vertigo taking over, again.. you know the rest of the story.
New to the site, but learning a ton. Have seen frequent posts to "ignore" political landscapes. Isn't it possible that replacing a capitalist with career politicians in the W/H undermines market confidence? It certainly drove my decision to take strong S&P positions in 2018-2019, "hang on" through the V-recovery in 2020, and walk away now...
You're very poetic.
You remind me of me.
Best of luck on this site,
and continue to follow your own beacon light to the heavens.
dwbosch2735
⋅
@The_Unwind - I'm deeply humbled and learning much from your light, Sensei.
Crazy_Cat_Man
⋅
@dwbosch2735, Something bad is coming. I've spent the past 6 months coding custom mean regression and standard deviation strategies... and what I am seeing now across all markets is pure manipulation from China.
valentinoamoro
⋅
I'm leaning towards a dump sometime this week as well, but would feel more confident if we see a blow off top the first couple of days to reel in the chasers. I agree - the first crack has appeared and its unclear if its a small correction or something bigger.