The Nasdaq 100 is near the cusp of a potential "Island " Bearish Double Top Reversal, one of the most bearish technical patterns out there.
A sudden unexpected breakdown in the pattern, at anytime would cause price to cascade literally straight down like domino's in a waterfall type decline.
Opportunistic traders who seize this "gift" opportunity to short the Nasdaq 100 right now utilizing say SQQQ and/or TECS could be significantly rewarded beyond measure should this Reversal occur from here as brokerage customers panic, placed on hold for an hour, trying to reach a human being on the other end of the phone.
Special thanks to Mark Rivest/Tradingview.com for his inspiration.
SPX and Nasdaq look very 'trappy'. Especially since the Russell is far away from it's ATH and moving sideways... telling me the overall market is imbalanced and not healthy. The Russell should be nearing ATH's as well.
supere
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This is an interesting article that was posted earlier which I feel explains to a great degree of accuracy what is happening in the world today and how the culprit central banks have been the catalyst agent all along: wsws.org/en/articles/2019/10/19/pers-o19.html. Although they claim to be protecting the economy, in reality they are causing the slow and grinding death of capitalism and democracy. With respect to the stock market, I think it most likely means we are in some gigantic degree 4th wave (a time of tension, protests, rebellions with no deterministic resolution) that will rocket prices up and down in a range bound manner (for years or decades) until everybody is dizzy or unconscious, ultimately going nowhere. This shall be followed by a final wave of hype and then a crash so destructive that it will change the face of the world's socio-economic classes and structure forever. The most difficult question is, when will this final wave and crash arrive? Unfortunately, I do not know, so I'm doing my best to learn to swing the market, and at this current level, I believe the next swing shall be down.
Perfect.
Do not waver in your convictions.
Best of luck. I hope you are able to realize the fruits of your wisdom.
supere
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I 100% agree with your analysis. At some point in the near future, traditional values of P/C and bearish sentiment during a 'bull market' will likely be smashed beyond recognition. I suggest observing carefully the movement of the VIX in the coming weeks for I'm expecting a downslide so fast and so violent that 97% of professionals investors will be stunned beyond belief. My timeframe for this event? From 1 week, to 3 months time, after which the central bankers shall respond with its final arsenal of illusionary recovery methods. This final attempt shall either result in the final gasp of the bull market from either 2008 or as far reaching as 1929 far exceeding ATHs, or sputter out in another long and grinding final 'B' wave. My view may be somewhat extreme, but it is what my eyes behold. Good luck to all.
Thank you for your market analysis.
I agree with you 100%.
The VIX will be critical, in confirming a significant market decline.
The point I would make here is that you are going to have to be ahead of this decline..enter short trades now
potentially having the market continue to rise, and the short trade go against you
.
Honor your stops, but do not let the market fool you by a rise to new highs,
as that ultimately could be the point when the levee breaks, and the waterfall decline begins in earnest.
I think the overriding "trigger" could be the complete element of surprise,
as investors/traders come to the potential collective opinion that they have been hood winked or fooled collectively into buying an overpriced market.
I use technology stocks here, because I believe currently they show the most "risk."
CodedFlow
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@The_Unwind, accurate analysis. .... that fking tweet pushed the market in the wrong direction at weekly rsi 50.