Just a Correction? Don't follow the Herd
מעודכן
This is an Update on my previous analysis this time I updated the H&S pattern to the correct drop target, with a few more indicators. And adjusted the drops to match similar time frames to the 08 crash. "The Economy Moves Up like a stair but it Drops like an Elevator"- Phil Town
OVER EXTENDED & PEOPLE ARE SPREADING FOMO
After a +9 year Bull run, the market is going strong. Everyone is buying and everything is going great, Weed stocks are going to make me rich! Weed stocks like
TLRY are going parabolic! Well until the last few days it isn't... We've seen and heard stuff like "Its just a correction." "Buy the dip." " Great time to Buy more." "Dollar Cost Average" etc. Well I'm here to say otherwise!
SMART MONEY IS GETTING OUT
If you've been following Warren Buffet, Ray Dalio and even Mark Cuban and all the other big Financial Investors/Smart Money you probably heard they have been pulling out of the stock market in Spring and are stockpiling cash. The problem is we are nearing the very end of the bull cycle and we are overdue on a Recession.
ECONOMIC IMPACTS
I love being a bull as much as the next guy especially since I have an online business but this growth is unsustainable with company share buy backs this October's Blackout is just the tip of the iceberg, the housing market slowing down due to climbing mortgage rates places like Texas and California are having a tough time selling Houses, Fed raising rates, weed stocks outpacing their true value, the Trade War Tensions between China and US.
HISTORY REPEATS ITSELF/ MARKET CYCLES
The main causes of the Great Depression and Great Recession lie in the actions of the federal government. In the case of the Great Depression, the Federal Reserve, after keeping interest rates artificially low in the 1920s, raised interest rates in 1929 to halt the resulting boom. That helped choke off investment. Also, President Hoover signed into law the sky-high Smoot-Hawley Tariff, which stifled trade and damaged American exports throughout the 1930s. Finally, the President signed a large tax increase into law in 1932, which halted entrepreneurship. READ MORE: https://fee.org/articles/comparing-the-great-depression-to-the-great-recession/ Everything there sounds very similar to whats going on except for the tax increases, we got tax cuts instead, phew.
If you don't believe me, Educating yourself from one of the best economists/hedge fund managers Ray Dalio on the BOOM & BUST Cycles: [url=youtu.be/PHe0bXAIuk0?t=732
OVER EXTENDED & PEOPLE ARE SPREADING FOMO
After a +9 year Bull run, the market is going strong. Everyone is buying and everything is going great, Weed stocks are going to make me rich! Weed stocks like
TLRY are going parabolic! Well until the last few days it isn't... We've seen and heard stuff like "Its just a correction." "Buy the dip." " Great time to Buy more." "Dollar Cost Average" etc. Well I'm here to say otherwise!SMART MONEY IS GETTING OUT
If you've been following Warren Buffet, Ray Dalio and even Mark Cuban and all the other big Financial Investors/Smart Money you probably heard they have been pulling out of the stock market in Spring and are stockpiling cash. The problem is we are nearing the very end of the bull cycle and we are overdue on a Recession.
ECONOMIC IMPACTS
I love being a bull as much as the next guy especially since I have an online business but this growth is unsustainable with company share buy backs this October's Blackout is just the tip of the iceberg, the housing market slowing down due to climbing mortgage rates places like Texas and California are having a tough time selling Houses, Fed raising rates, weed stocks outpacing their true value, the Trade War Tensions between China and US.
HISTORY REPEATS ITSELF/ MARKET CYCLES
The main causes of the Great Depression and Great Recession lie in the actions of the federal government. In the case of the Great Depression, the Federal Reserve, after keeping interest rates artificially low in the 1920s, raised interest rates in 1929 to halt the resulting boom. That helped choke off investment. Also, President Hoover signed into law the sky-high Smoot-Hawley Tariff, which stifled trade and damaged American exports throughout the 1930s. Finally, the President signed a large tax increase into law in 1932, which halted entrepreneurship. READ MORE: https://fee.org/articles/comparing-the-great-depression-to-the-great-recession/ Everything there sounds very similar to whats going on except for the tax increases, we got tax cuts instead, phew.
If you don't believe me, Educating yourself from one of the best economists/hedge fund managers Ray Dalio on the BOOM & BUST Cycles: [url=youtu.be/PHe0bXAIuk0?t=732
הערה
Keep in Mind: The right shoulder could touch the 100-MA and go for ATH again, nullifying the H&S pattern. We've seen it go under in 2016 and holding support on the 200 day.Dropping below the Weekly 200-MA and closing underneath it, will signal a recession and the bears will slaughter any bulls, driving the price down.
כתב ויתור
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