For months we have seen the dollar take a beating while the stock market rises to epic proportions. Its so easy to "Buy the dip, bro" without thinking of the consequences of what an everlasting market means for the rest of the economy when the economy is already in bad shape. Since we all know the Fed is not going to allow the market to take a huge dive before the election, it also simultaneously is worried that inflation is going to cause more damage in the aftermath. And how high can NQ go? Well shit...lets just say I wouldn't put 20,000 past that bastard at this point.
In the meantime liquidity is finally starting to wane again. The last time Liquidity faded into neutral territory was in the latter half of June. Gone were the days of easy dip-buying, no, it actually had the potential to go down harshly if one were not careful. Liquidity is supposed to go neutral by mid September and the dollar has been itching for a boost this last week along with its good buddy, the VIX.
I like to check on the weekly and monthly charts every now and then, especially how a candle is developing at the end of the month. As we noticed circled on the top of the chart, it showed what the pros like to call a "gravestone doji." This is a doji signifying the winds of chaos have shifted to favor the Bear Gods and so it did with a deep glorious red on the monthly chart. But we are getting closer to the end of the downward wedge, what is in store for next month?
My guess? A dragonfly doji that will signify the dollar is back in black, baby! It will look like a "t" with a small top, almost the opposite of a graveyard in look. What does this mean for everyone else? Volatility, some downs and ups, you know, all the fun roller coaster shit that day traders love but investors hate. Now these dojis honestly work best at the higher level charts and some people dont use them or need them (there are multiple ways to make money on the market), but its an interesting thing to note none the less. Ill be watching out to see if our dragon fly shows up and ready to fly into my upper wedge. Will this be the end of stonks only go up? Probably not. But it could signify that something is coming in the next few months. When? Couldnt tell you, but its lurking in the shadows, waiting.
In the meantime liquidity is finally starting to wane again. The last time Liquidity faded into neutral territory was in the latter half of June. Gone were the days of easy dip-buying, no, it actually had the potential to go down harshly if one were not careful. Liquidity is supposed to go neutral by mid September and the dollar has been itching for a boost this last week along with its good buddy, the VIX.
I like to check on the weekly and monthly charts every now and then, especially how a candle is developing at the end of the month. As we noticed circled on the top of the chart, it showed what the pros like to call a "gravestone doji." This is a doji signifying the winds of chaos have shifted to favor the Bear Gods and so it did with a deep glorious red on the monthly chart. But we are getting closer to the end of the downward wedge, what is in store for next month?
My guess? A dragonfly doji that will signify the dollar is back in black, baby! It will look like a "t" with a small top, almost the opposite of a graveyard in look. What does this mean for everyone else? Volatility, some downs and ups, you know, all the fun roller coaster shit that day traders love but investors hate. Now these dojis honestly work best at the higher level charts and some people dont use them or need them (there are multiple ways to make money on the market), but its an interesting thing to note none the less. Ill be watching out to see if our dragon fly shows up and ready to fly into my upper wedge. Will this be the end of stonks only go up? Probably not. But it could signify that something is coming in the next few months. When? Couldnt tell you, but its lurking in the shadows, waiting.