=> The move lower is justified, since Equities at these levels are as good as forced. After Fed and other CB intervention has stopped, it will inspire anything but confidence.
=> So a health crisis, thirsting for a vaccine allowed Equities to outperform last Q as a haven for the bizarre 'Keynesian stimulus'. The correct move was a dead-cat-bounce and early buyers were slight! Now that we have cleared the knee jerk phase, what will follow is an elegant catastrophe.
Let us look at that DAX chart for reference to the dead-cat-bounce:
After overshoots to the downside Buyers defended their game in an entirely rational manner, but now they commit a mistake which enables a snap decision for risk bears. Even those who are bullish on the ST outlook can admit these levels are unattractive in view of the fact that a second wave will oblige surrender on the activity. Remember re-openings are political fairy-dust, confidence is just not there and a quick look at VIX sitting above Lehman levels tells us this.
Here many roads lead to home. Unfortunately thanks to the presence of real risk into US elections and year end flows. Thanks for the support coming with likes, charts, questions and etc.
Great post! How did you make the predicted price line?
mtraderz
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Thanks, looking forward to the upcoming update!
m1c4h
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Market and VIX simultaneously green today... like right before the June 8th vol pop. Your thoughts? I hope this plays out as presented... going to be patient with my VIX NOV calls. An update of this in the coming weeks would be appreciated. Thanks!
seraphtrader
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Market will go down by 1000 pips tomorrow bullish Momentum is gone on the daily and monthly the weekly momentum is nearing neutral
tradingwithnoobreinier
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It would take another pandemic for price to come back down to those lows.
ridethepig
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Another? @tradingwithnoobreinier Sadly this one never went away... US could not even escape wave 1