US30: The Fun Is Coming To An End
Hello All,
Your initial thought may be to fire off at me in the comments about how I am crazy to think something like this. Please keep an open mind. We are at a point in these markets never seen before in history.
Debt is now 170% to GDP. The printing just won't stop. Inflation keeps getting higher. The market never actually recovered from COVID. The FED stimulated the economy in every way possible. This stimulus has made the markets become disconnected from reality.
THIS GROWTH IS FAKE AND STIMULATED. That doesn't go for EVERY stock but overall its true. For the majority of companies, revenue is nowhere near where it was pre COVID. Most businesses have not even recovered. These markets are NOT a reflection of the world and that has created a large divergence. That divergence soon will play. Markets will finally react to reality.
These WSB stocks are perfect proof that this market IS NOT REALITY. What has happened with stocks like BB, AMC, NOK & GME show the complete fairy tale land these markets are in. Everyone should take the last couple days events as a sign the top is VERY NEAR.
On to the chart. At first glance, you can see how SIMILAR the three blue bubbles are. The exact formation the US30 is in, is the same formation it has made the last 2 big size drops. This formation can be reffered to as a broadening wedge! Each time the price touches the top trend, it consolidates and breaks down fast and hard. Each drop has found support on the bottom trend and bounced FAST.
While looking at the RSI (relative strength index), I have drawn a MASSIVE bearish divergence. This occurs when a higher high is made on the price action but the RSI prints a lower high. This is extremely bearish.
Please share your comments below and like!
Thank you all!
Your initial thought may be to fire off at me in the comments about how I am crazy to think something like this. Please keep an open mind. We are at a point in these markets never seen before in history.
Debt is now 170% to GDP. The printing just won't stop. Inflation keeps getting higher. The market never actually recovered from COVID. The FED stimulated the economy in every way possible. This stimulus has made the markets become disconnected from reality.
THIS GROWTH IS FAKE AND STIMULATED. That doesn't go for EVERY stock but overall its true. For the majority of companies, revenue is nowhere near where it was pre COVID. Most businesses have not even recovered. These markets are NOT a reflection of the world and that has created a large divergence. That divergence soon will play. Markets will finally react to reality.
These WSB stocks are perfect proof that this market IS NOT REALITY. What has happened with stocks like BB, AMC, NOK & GME show the complete fairy tale land these markets are in. Everyone should take the last couple days events as a sign the top is VERY NEAR.
On to the chart. At first glance, you can see how SIMILAR the three blue bubbles are. The exact formation the US30 is in, is the same formation it has made the last 2 big size drops. This formation can be reffered to as a broadening wedge! Each time the price touches the top trend, it consolidates and breaks down fast and hard. Each drop has found support on the bottom trend and bounced FAST.
While looking at the RSI (relative strength index), I have drawn a MASSIVE bearish divergence. This occurs when a higher high is made on the price action but the RSI prints a lower high. This is extremely bearish.
Please share your comments below and like!
Thank you all!
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