These next 2 weeks will determine the future of our world.
What a crazy time. The Fed is now offering 1 trillion dollar repos every day for 30 days, and we are seeing a rush into the US Dollar. Things I have been predicting. As the dollar gets stronger, the worse the wolds problems become due to the emerging market dollar denominated debt.
And we may not have seen anything yet...
These next two weeks will determine the future of the world/civilization for the upcoming 6-18 months. On the social scale, if this virus growth balloons like Italy, as many have been saying it would, we will see more lock downs in Canada and the US and the damage will be done. When people leave their homes, they will not make eye contact and there will be fear. Social gatherings will not be the same until some sort of vaccine is created.
I don't need to say much on the economic side. We are entering a period where many small and medium sized business' are dying. Many corporations will need a bailout, and the governments are now saying they would require equity stake. Industries and companies are being nationalized or will become indebted with loans. Big government and corporations running the world entirely. Digital money will then be implemented and they will use the excuse of preventing bank runs, or the say that cash transmits the virus. Now everything can be tracked and taxed.
Watch for this to happen in Europe first.
Now I want to talk about the equity charts here, the S&P. This is what I want to see in the next 2-3 weeks.
We did close below a major zone on the weekly, so there is a good chance for a drop here.
However, I want to guide you to long term trend line from the bottom in 2009 to present day. You can see that we broke below this trendline which has been on the radar for any people. Just applying market structure here, we have closed below the higher low swing so the uptrend is now over. We should expect to see a lower high swing being formed here. This is what I present in the second case. Perhaps we will see a bounce to the trend line, and then next week, see the decline and break lower creating new lower lows and confirming the lower high.
This would mean further downside in this new bear market.
In order to nullify this, we would need to break and close above the 2900-3000 level. Technically there is nowhere to go for yield except stock markets so this can play out. However, people are still panicking and running for cash. We will see if the combination of monetary and fiscal policy can ease the fear.
These are exciting times we are living in, and I believe more books will be written about these next few years than any other time period in history. But I must warn we are entering a period of big government. Debt will be used to bail these companies out and nationalize them as I have discussed. Remains to be seen if this money will also be used to buy up assets which would put us in entirely managed markets.
And we may not have seen anything yet...
These next two weeks will determine the future of the world/civilization for the upcoming 6-18 months. On the social scale, if this virus growth balloons like Italy, as many have been saying it would, we will see more lock downs in Canada and the US and the damage will be done. When people leave their homes, they will not make eye contact and there will be fear. Social gatherings will not be the same until some sort of vaccine is created.
I don't need to say much on the economic side. We are entering a period where many small and medium sized business' are dying. Many corporations will need a bailout, and the governments are now saying they would require equity stake. Industries and companies are being nationalized or will become indebted with loans. Big government and corporations running the world entirely. Digital money will then be implemented and they will use the excuse of preventing bank runs, or the say that cash transmits the virus. Now everything can be tracked and taxed.
Watch for this to happen in Europe first.
Now I want to talk about the equity charts here, the S&P. This is what I want to see in the next 2-3 weeks.
We did close below a major zone on the weekly, so there is a good chance for a drop here.
However, I want to guide you to long term trend line from the bottom in 2009 to present day. You can see that we broke below this trendline which has been on the radar for any people. Just applying market structure here, we have closed below the higher low swing so the uptrend is now over. We should expect to see a lower high swing being formed here. This is what I present in the second case. Perhaps we will see a bounce to the trend line, and then next week, see the decline and break lower creating new lower lows and confirming the lower high.
This would mean further downside in this new bear market.
In order to nullify this, we would need to break and close above the 2900-3000 level. Technically there is nowhere to go for yield except stock markets so this can play out. However, people are still panicking and running for cash. We will see if the combination of monetary and fiscal policy can ease the fear.
These are exciting times we are living in, and I believe more books will be written about these next few years than any other time period in history. But I must warn we are entering a period of big government. Debt will be used to bail these companies out and nationalize them as I have discussed. Remains to be seen if this money will also be used to buy up assets which would put us in entirely managed markets.