The following analysis looks at the 2 major historical crashes:
1929 Wall Street Crash
2000/08 Dotcom Bubble & Subpime Crash
I then compare them with where we are today in 2021, and where the market is going for the next decade 2022 - 2032.
I take a simple, reductionist approach to look at basic technical analysis / indicator (MACD) factors identifying similarities and compare them, following the efficient markets hypothesis that all available information is priced into the market.
By applying this, observing historical trends, similarities and outcomes I assume current trends may play out in a similar manner under the similar conditions of technical analysis / indicators.
The market repeats itself, time and time again we can identify repetition in trends and outcomes.
1929 - 1942: Wall Street Crash & The Great Depression
1.a: Observe how the market is overinflated from 1927 - 1929
- The market broke into the blue channel in 1927, aggressively inflating compared to previous decades of growth.
- The market broke out of the blue channel in Jan 1929, into outer-space, these levels could not be sustained and in November 1929, this resulted in the Wall Street Crash
2.a: Observe how the growth and crashes in late 19th Century / early 20th Century channel respect the inner green channel
- These were the panics of the 1870โs, 1880โs 1890โs, and 1900โs, 1910โs etc. - indicators seem to be stable and channel is not broken
3.a: Observe the Mega Crash of 85%:
- This crash was so big, it set new channel for 20th century
4.a: Observe the MACD Histogram Stability, Breakout and Collapse:
- Even during the 1870-1910โs panics, the MACD is stable
- In 1927, we see a breakout of the MACD to unseen high levels, ties to the break into the blue channel
- A MACD collapse follows, very soon after the breakout from the blue channel and results in 85% crash
2000 - 2010: Dotcom Bubble & Subprime Crash & The Great Recession
1.a: Observe how the market is overinflated from 1994 - 2000, and never retraces until 2009
- The market broke into the blue channel in 1994, aggressively inflating compared to previous decades of growth.
- The market broke out of the blue channel in Jun 1997, into outer-space, these levels could not be sustained and in September 2000, this resulted in the Dotcom bubble crash
- The market did not fully retrace, and eventually in 2007 there was a small breakout of the blue channel and resulting Submprime crash
2.a: Observe how the growth and crashes in mid 20th Century channel respect the inner green channel
- These were the crisis of '66, โ69, โ73, '87 etc. - indicators seem to be stable and channel is not broken
3.a: Observe the Medium Crash of 58%:
- This crash actually played out over 2 intervals, the Dotcom & Subprime
- I am not sure if this was big enough to set a new channel for the 21st century, or in the previous channel of the 20th century is still in play
4.a: Observe the MACD Histogram Stability, Breakout and Collapse:
- Even during the 1950s-1980s crisis, the MACD is stable
- In 1995, we see a breakout of the MACD to unseen high levels, ties to the break into the blue channel
- A MACD collapse follows in Dec โ99 coinciding with the breakout from the blue channel very soon after the results is a 58% crash
2022 - 2032: Global Economic Crisis & The Great Recession
1.a: Observe how the market is still overinflated even after the ditch bubble and subprime crashes
- The market broke out of the blue channel in Jan 2021, aggressively inflating similar to Dotcom bubble
- Assuming that the break from the blue channel results in a crash, I have overlaid the crashes of 1929 & 2000/08
3.a: Prediction of a mega crash in 2022 - 2025 around 60%-80% using previous crashes as baseline
- See the overlays and potential correction paths that could play out
- Both the 1929 & 2000/08 crashes follow a similar trend of a correction, followed by a breakup, followed by another correction
- I am proposing that this crash will be significant enough to result in a new channel to be set for the 21st century
- I believe that this crash is planned (this is part of the Great Reset) the global economic masters want to reset the global economy - just read about it from the Work Economic Forum (but this opinion is outside the technical analysis)
4.a: Observe the MACD Histogram Stability & Breakout- is the next step the Collapse: ??
- Looking at the MACD across the 2000-2020 range, it is actually stable
- In Jan 2021 we see a breakout of the MACD to unseen high levels, ties to the break out of the blue channel
- Prediction: A MACD collapse will follow between 2022 and 2025, which will be followed by similarly volatile repetitions of this MACD breakout & collapse
Conclusion:
Observing the historical 1929 & 2000/08 Crashes, they appear to manifest in similar ways in breakouts of the major trend channel, disrespecting decades long stable market micro-cycles, but especially on the MACD Histogram.
Now in 2021 we appear to be experiencing exactly the same conditions playing out. The monthly MACD Histogram is a massive warning sign when assessed in comparison to the historical crashes. Hoe the crashes built up and played out.
I expect that 2022 - 2025 will see a major market correction of -60% to -80%, purely based upon technical analysis / indicators.
Opinion:
To add colour to the indicators, we can look at the news, the agendas and what the global economic elite are planning:
The Great Reset.
Klaus Schwab (Founder of the World Economic Forum) in his book, The Great Reset (2020) outlines his outlook for the coming decades of rest that will happen across our global local, business and private lives. This outlook is aligned with the agendas (Agenda 2030, 2050 etc.) of the World Economic Forum and other globalist institutions, IMF, World Bank, WHO etc.
What is clear is that the global economic elite are capitalising on the COVID pandemic as a catalyst to reset the global economy and societies.
Or perhaps, the Covid pandemic is a coverup to hide the real cause of the inevitable global economic crisis?
The mask of bad monetary policy, excessive money printing / fiat, fractional reserve banking and marco economic & generational cycles.
What are your thoughts?
Feel free to share ideas!