Trader's paradise and investor hell. Bulls heading for ....
"Buy and hold bulls" are heading to the slaughterhouse. At least that's why the short term charts are indicating. If there was any doubts that being a trader (short term "investor") is better than being long term investor, this latest market crash confirms it. Get ready to see something you have never seen before. WAIT, we're already seeing it and just like 2007/2008, most people are totally confused and guided by mass media! No time in history has the crash been so violent.
The real deadly "pandemic" isn't biological, it's financial. The financial markets are predicting very sad economic times ahead starting with the people who are the weakest. Very unfortunate. This is where capitalism fails. We fail to have proper safety nets.
Getting back to Just Charts! On the 15 min time frame it's a confirmed continue sell/short but not for long in these market conditions. If you are an active trade, you'll know when to buy the dips at botttom support with a tight stop loss and sell as soon as it bounces to the top resistance lines. If you are an investor, sorry, the only thing I suggest is learn to trade and avoid having any positions at the end of the day unless the directions is clear and the risks are low. Always be ready to cut your loses and get back in short term when everyone has puked (capitulated).
Be ready to move cash out of the markets entirely into safe asset classes (guns, ammo) but not right now. Medium term, the bounce will happen on virus cure or when mass media starts focussing the on the very low mortality rate. Long term, cash will be losing its value so the last thing you want is to hold on to that mass trillion dollar dilution. Where to invest? "Real asset classes". Things people need to survive hyperinflation which won't be able to be controlled by governments. If you disagree, please comment why. I am a student of the markets and I don't have all the pieces to the puzzle figured out. Yet...
The real deadly "pandemic" isn't biological, it's financial. The financial markets are predicting very sad economic times ahead starting with the people who are the weakest. Very unfortunate. This is where capitalism fails. We fail to have proper safety nets.
Getting back to Just Charts! On the 15 min time frame it's a confirmed continue sell/short but not for long in these market conditions. If you are an active trade, you'll know when to buy the dips at botttom support with a tight stop loss and sell as soon as it bounces to the top resistance lines. If you are an investor, sorry, the only thing I suggest is learn to trade and avoid having any positions at the end of the day unless the directions is clear and the risks are low. Always be ready to cut your loses and get back in short term when everyone has puked (capitulated).
Be ready to move cash out of the markets entirely into safe asset classes (guns, ammo) but not right now. Medium term, the bounce will happen on virus cure or when mass media starts focussing the on the very low mortality rate. Long term, cash will be losing its value so the last thing you want is to hold on to that mass trillion dollar dilution. Where to invest? "Real asset classes". Things people need to survive hyperinflation which won't be able to be controlled by governments. If you disagree, please comment why. I am a student of the markets and I don't have all the pieces to the puzzle figured out. Yet...
Comment:
Bulls managed to break the downtrend, thank to the Fed's "we'll buy everything" and Trumps desire to "restart the economy". You know, pressing that magic button "Fix". LOL Don't fight the tape, we'll go up to retest 244 but market bears are eager. The government intervention is getting priced in so after than you really want entry and exit points.
"The lockdown affecting large segments of the American public to try to curb the spread of the coronavirus is likely to last 10 to 12 weeks, or until early June, U.S. Treasury Secretary Steven Mnuchin said on Sunday." (March 22nd, 2020)
"New York Stock Exchange Shuts Floor As Coronavirus Spreads" (March 22nd, 2020) But the NYSE will "should" stay open.
I would not be surprised to see Level 3 Circuit breakers to go off in the markets tomorrow. This is massive news. Not all bulls will fall, so capitulation isn't here.
There is no end in sight of bearish news except for some possible minor news (distribution of cash directly to individuals). I like the idea of calling this "Spring Break" and give everyone the time off. All payments for everything postponed and the government sends the stimulus cash directly to individuals. Call it CETW "capitalism emergency temporary welfare". The past stimulus wasn't effective because banks and large corp never distribute the money down to the people. That's where it needs to go directly and quickly to allow the masses to continue to live through this "broken capitalism system". From a trading perspective, only trade if you know how because this will be a wild ride.
On the bigger picture, the saving grace for humanity is that we always find a solution to our most complicated problems. Money is just "IOU" from governments and if you live in a stable country, you should be good.