There were warning signs all over the place.
Yet they were ignored, traders were too and the market kept going up
throughout the entire month of April and then in early May.
For 24 trading days, the market kept going up.
However, it took just 3 trading days, in a magnitude of 8 to 1,
for the market to give it all back.
Many of the charts that I'm looking at tonight show declines of 30, 40 and 50 %, or greater
and for the holders of these company stocks, it is doubtful that those losses will ever fully be recovered .
Traders incredible bullishness for stock in 2021, has now done many of them in.
It took just hours to this to happen. Shock is now a word that applies.
To my eyes, to see this stock meltdown first hand leaves me almost certain
that after some kind of short term bottom and bounce is found,
to work off the inventory of stock that was sold to still buyers,
the market will once again start to fall sharply, and where the next legs down goes to,
perhaps a retest of S+P 4000, its going to be just as painful to those traders who buy in,,
because they'll find that once it starts down, it's going to keep going down and down
The psychology of the stock market has turned on a time.
It simply is now a market of extremely high risk,
Waiting for the other shoe to drop, which you know will occur.
The suddenness off this stock market top, will leave many traders in absolute shock,
sitting at their terminals, literally unable to do anything.
Trust me on this.
A stock market top of significant magnitude is in.
I certain wouldn't want to touch any of those stocks,
where the technical damage is so severe,
This is going to take time to find a meaningful bottom.
Yet if this turns out to be the start of a super bear market,
the good news is that you still have time to get out now,.
before more significant selling, takes the market down even further and even more technical damage is done,
Rallies should be sold to get out while you can.
This is not going to have a happy ending,
unless you find solace in carnage.
This is serious, and should be treated that way,
unless you want to find some stock that is already down 30%,
and you wanna own it for another 30 % decline.
Stay away from the scene of the crime, for as long as you can.
Trust me when I say this, despite occasional dead cat rallies,
a stock market top is in,
And an even greater danger for much more loss lies just over the horizon,
Woods of Connecticut