We are entering BEAR Territory. Daily 50 MA crossed 200 MA, so called DEAD CROSS. This could be Correction, but more likely Entering BEAR if falls 20% over 2 months period (by definition). We have to watch more.
Reason is follows:
1. stock is overvalued.
2. Earning growth is stalled.
3. Global economy is entering recession.
4. US manufacturing, GDP is falling down.
5. global trade is falling down.
6. Fed is no longer promising to support market.--no 0% interest rate, no QE for now.
This could be changed any point of time at Fed meeting, but for now, pointing down.
If stock price is below 200MA, and 50MA, I only short at the high peak. I wait till price goes up to the highest peak.
I do nothing until then. Then, start to short once I noted peak is start to fall down.
Reason is follows:
1. stock is overvalued.
2. Earning growth is stalled.
3. Global economy is entering recession.
4. US manufacturing, GDP is falling down.
5. global trade is falling down.
6. Fed is no longer promising to support market.--no 0% interest rate, no QE for now.
This could be changed any point of time at Fed meeting, but for now, pointing down.
If stock price is below 200MA, and 50MA, I only short at the high peak. I wait till price goes up to the highest peak.
I do nothing until then. Then, start to short once I noted peak is start to fall down.
