How Market Crashes are Preceded by Politics
Hello Everyone
I was reading an analysis on the market situation by PSG and decided to take a look at the VTI chart for time references.
For those that aren't aware, the fund is a market capitalization-weighted index that measures the entire investable U.S. equity market. It includes small-, mid-, and large-cap companies. (copy pasta from Investopedia since they explain it so well)
What I found was quite astonishing. And I have collected it into the image above for easy reference.
For any notable price action, there will always be a reason according to the markets. 3 Things worth noting that happened before the start of the market crash (just as markets were trading at all time high's):
Firstly; the stock market index fund VTI had just reached a perfect 4.414 Fibonacci extension.
Secondly, this is preceded by a noteworthy event late last year where the presidents of the Federal Reserve banks of Boston and Dallas declared that they are selling their individual stock holdings due to "ethical reasons". This comes amid scandals of insider trading.
Lastly, the timeline coincides with the recent talks about a ban on security trading altogether for members of Congress.
Another example that some people always seem to be ahead of the game. So remember this whenever you trade: markets weren't made for you to make money. This doesn't mean that with thorough analysis we can't ever get ahead, WE CAN. However, keep in mind that you are trying to beat formidable forces and we all need any help we can get. So follow, share ideas, and do research! Sometimes you're ahead, sometimes you're behind.
Best Regards
Ev
I was reading an analysis on the market situation by PSG and decided to take a look at the VTI chart for time references.
For those that aren't aware, the fund is a market capitalization-weighted index that measures the entire investable U.S. equity market. It includes small-, mid-, and large-cap companies. (copy pasta from Investopedia since they explain it so well)
What I found was quite astonishing. And I have collected it into the image above for easy reference.
For any notable price action, there will always be a reason according to the markets. 3 Things worth noting that happened before the start of the market crash (just as markets were trading at all time high's):
Firstly; the stock market index fund VTI had just reached a perfect 4.414 Fibonacci extension.
Secondly, this is preceded by a noteworthy event late last year where the presidents of the Federal Reserve banks of Boston and Dallas declared that they are selling their individual stock holdings due to "ethical reasons". This comes amid scandals of insider trading.
Lastly, the timeline coincides with the recent talks about a ban on security trading altogether for members of Congress.
Another example that some people always seem to be ahead of the game. So remember this whenever you trade: markets weren't made for you to make money. This doesn't mean that with thorough analysis we can't ever get ahead, WE CAN. However, keep in mind that you are trying to beat formidable forces and we all need any help we can get. So follow, share ideas, and do research! Sometimes you're ahead, sometimes you're behind.
Best Regards
Ev
