There are two Inverted Triangle Formations denoted by the yellow letters and the light blue letters. They are both bearish patterns currently. The Light Blue letters signal that there will be a bullish flip at E. The yellow letters signal that we will break the downward sloping pink line.
There are a couple rising wedges that have formed since the bull market started in April 2020. The rising pink line has been resistance. The line was broken last week but, will it be a sustained break?
Weekly RSI Divergence is very scary. You usually don't want to see divergences at higher time frames. Also, the channel has become very constricted.
In 1999 Gold Peaked in October and Markets peaked on March 2000. In 2008 Gold peaked in March and Markets peaked in August/September. Gold Peaked in August 2020. When will Markets peak??
This lines up with reversals in the Dollar and TLT.
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If the stock market were to correct, there wouldn’t be any shorts to cover. That means the market can free fall before catching a bid. The median stock has a 1.6% short interest ratio which is right near the bottom of 1.5% at the peak of the tech bubble. The short squeezes in January have discouraged many short sellers. This will cause some turbulence......
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Penchant for Trash: penny stocks, companies with no earnings, and companies with horrible fundamentals all outperformed actual companies. This is another warning sign...
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Robinhood and WeBull were the top downloaded stocks. Those who learn trading through meme stocks will surely be turned into a meme.
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Why is Gold on this chart and Why is it a predictive force:
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I think we are approaching very crucial inflection points around the market. For example, TLT, EEM, FXI, TLT, XLE, XLF, Silver (Double Top??), IWM, TESLA, etc.. All of these assets will make a choice up, down or sideways and this will tell us a lot about the markets. Imagine if you wake one day and see negative yield? You may not think it will happen but, it is very possible.
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Let's not forget we have been in a very bullish market. 500% gains if you started investing in 2009. I believe earnings have been distorted because companies buy back a lot of their own shares which skews per share earning numbers.
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DXY is also at a crucial point if support does not hold it can go back to trending down. However, today, when markets went up the dollar followed.....
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If you actually follow the csri back it has never been that constricted and that high, the times it looked like it... a crash eventually happened.
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Disconnect between EEM/TIPS and GDX signal trouble...
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The Monetary Base is growing faster than the Money Supply. There is a demand for cash that exceeds the supply.
We've featured this in Editors' Picks. It may spark quite the discussion below. We look forward to reading what others say.
arama-nuggetrouble
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@TradingView, Thank you!! I will pass it along to another publisher.
aaron.remski
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Thanks, holmes. the question then is to what should one move their investments... crypto?
Darkan12
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@AaRon.remski, The crypto market is quite correlated with the stock market - It is likely to see a correction in both markets at the same time in my opinion.
arama-nuggetrouble
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@AaRon.remski, Hello Aaron! Thank you for the TV coins. It will be passed along to another publisher. Bonds are good to own if you think markets will crash. All other assets will be cold for liquidity purposes in a market crash. I would say move to a more conservative type of portfolio with less risk. Wait for bigger corrections if you want to buy stocks, crypto or commodities. Everything is massively overvalued. you don't want to be buying too much at these levels.
Woerle
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Well researched. Thank you very much !
arama-nuggetrouble
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@Woerle, Thank you. A lot of research is done to publish these ideas. More to come!!