The real dip has yet to happen and could be just ahead and here's why:
Western governments are giving handouts left right and center and economies are shut down. Businesses are closed and people aren't working.
Financial implications of this should technically be much greater than the past scenarios pointed out above in the chart. We aren't just bailing out banks now, it's people and businesses too.
Just for perspective:
Dotcom bubble pop sent the market into a bear cycle which laster 966 days before it started to trend upward again. Total loss from local high (-83.75%)
2008 Mortgage Crisis send the market crashing over a total of 504 days for a total loss from its local high (-54.27%)
The current situation with COVID-19 is a tragedy on a much larger and global scale, and it's only been just over 2 months since all time high.
This news paired with the fact that record-high number of CEOs have stepped down from their positions and liquidated their holdings should be concerning.
Over 200 CEOs have stepped down in January 2020 alone. CEOs vacating thier positions while the market is trading at record highs can be a sign that the cycle has peaked.
Some of the Big companies which CEOs decided to step down are:
United Airlines
Gap
McDonalds
Wells Fargo
Under Armor
PG&E
Kraft Heinz
HP
Warner Bros
Best Buy
eBay
Nike
...list goes on.
Another gem..
The 50EMA hasn't even crossed under the 200EMA. Not saying that is has to but if we are in fact supposed to be in a bear trend (which I don't see why we shouldnt be as there is no reason to believe we are in a healthy market at this moment) I would expect it to cross beneath the 200EMA.
In fact, we have dipped only to bounce right off the 200EMA.
Note: The same exact thing has occurred in the past. We broke down to first bounce off of the 200EMA for a small rally up, only to come crashing down substancially over some period of time.
I'm not one to make predictions, I like to simply trade off of technicals and data but I'm going to go on a limb here and say that this recent "Crash" people are raving about is not even a crash. It's barely comparable to the corrections we've had in the recent past.
This is simply a sucker's rally being bought back at the 200EMA as support just like the past and is going to come down, just my opinion of course.
Retail investors are happy that the market is "recovering" while smart money has left the building lol. I smell blood ;)
This is not investment advice. Just my opinion on the market and current economy. Would love to know what you think so don't be shy to comment and share!
Be safe, and happy trading :)
Western governments are giving handouts left right and center and economies are shut down. Businesses are closed and people aren't working.
Financial implications of this should technically be much greater than the past scenarios pointed out above in the chart. We aren't just bailing out banks now, it's people and businesses too.
Just for perspective:
Dotcom bubble pop sent the market into a bear cycle which laster 966 days before it started to trend upward again. Total loss from local high (-83.75%)
2008 Mortgage Crisis send the market crashing over a total of 504 days for a total loss from its local high (-54.27%)
The current situation with COVID-19 is a tragedy on a much larger and global scale, and it's only been just over 2 months since all time high.
This news paired with the fact that record-high number of CEOs have stepped down from their positions and liquidated their holdings should be concerning.
Over 200 CEOs have stepped down in January 2020 alone. CEOs vacating thier positions while the market is trading at record highs can be a sign that the cycle has peaked.
Some of the Big companies which CEOs decided to step down are:
United Airlines
Gap
McDonalds
Wells Fargo
Under Armor
PG&E
Kraft Heinz
HP
Warner Bros
Best Buy
eBay
Nike
...list goes on.
Another gem..
The 50EMA hasn't even crossed under the 200EMA. Not saying that is has to but if we are in fact supposed to be in a bear trend (which I don't see why we shouldnt be as there is no reason to believe we are in a healthy market at this moment) I would expect it to cross beneath the 200EMA.
In fact, we have dipped only to bounce right off the 200EMA.
Note: The same exact thing has occurred in the past. We broke down to first bounce off of the 200EMA for a small rally up, only to come crashing down substancially over some period of time.
I'm not one to make predictions, I like to simply trade off of technicals and data but I'm going to go on a limb here and say that this recent "Crash" people are raving about is not even a crash. It's barely comparable to the corrections we've had in the recent past.
This is simply a sucker's rally being bought back at the 200EMA as support just like the past and is going to come down, just my opinion of course.
Retail investors are happy that the market is "recovering" while smart money has left the building lol. I smell blood ;)
This is not investment advice. Just my opinion on the market and current economy. Would love to know what you think so don't be shy to comment and share!
Be safe, and happy trading :)