Our last idea called the mega rally last Friday as another fake out, again the selling immediately returned until Friday this week where we had a soft rally on low volume.
Markets are trading heavy again, no real will to buy as stocks are distributed from strong hands to weak. So where from here?....a few scenarios can play out but they all lead to the same ugly outcome.
Markets may have topped on the 28th spike and we are in the beginnings of multiple wave 3's down or we get a minor rally up towards 32,000 again and then down hard. Or we fall this week to complete an ABC down from the 28th June and then bounce up towards 32,000ish.
Our take is a minor rally for another week or so is likely and will crawl stocks reluctantly higher on low volume and complete minor wave 2 up and be followed by a very serious event to kick off any doubts we are in a true bear market.
Many bulls are clinging to their positions underwater, hopeful of much better prices to escape...this will not materialise for most of them, the rest will jump off the cliff on the point of recognition.
What serious events are the trigger...earnings downgrades, interest rates or a black swan event?
The so called war in Ukraine has become stale in news lately, perhaps Lithuania's blocking of supplies to the Russian State of Kaliningrad will produce an aggressive response from Moscow?
Whatever is coming, it's very big and ugly.
We stay short, confident that this current sell zone is one of thee times in history when such an immense opportunity exists similar to 2008.
26,000 may hold but briefly...our longer term target is below 10,000.
Appreciate a thumbs up...Good Trading!
Markets are trading heavy again, no real will to buy as stocks are distributed from strong hands to weak. So where from here?....a few scenarios can play out but they all lead to the same ugly outcome.
Markets may have topped on the 28th spike and we are in the beginnings of multiple wave 3's down or we get a minor rally up towards 32,000 again and then down hard. Or we fall this week to complete an ABC down from the 28th June and then bounce up towards 32,000ish.
Our take is a minor rally for another week or so is likely and will crawl stocks reluctantly higher on low volume and complete minor wave 2 up and be followed by a very serious event to kick off any doubts we are in a true bear market.
Many bulls are clinging to their positions underwater, hopeful of much better prices to escape...this will not materialise for most of them, the rest will jump off the cliff on the point of recognition.
What serious events are the trigger...earnings downgrades, interest rates or a black swan event?
The so called war in Ukraine has become stale in news lately, perhaps Lithuania's blocking of supplies to the Russian State of Kaliningrad will produce an aggressive response from Moscow?
Whatever is coming, it's very big and ugly.
We stay short, confident that this current sell zone is one of thee times in history when such an immense opportunity exists similar to 2008.
26,000 may hold but briefly...our longer term target is below 10,000.
Appreciate a thumbs up...Good Trading!