NotFredo

Could a 1987 Happen? IF So Blame These Divergences

Short
SP:SPX   S&P 500 Index
I am looking for a one day drop of more than 5% to start first quarter and its because of the money flow, RSI, and stochastic sell divergences as well as the divergence between the rising vix and rising stock market. Omicron could do it, but also the re-opening could do it via the prospect of fiscal drag as the training wheels are removed from the monetary and fiscal overlords :)

We are just here to pick up the scraps from this newer command and control regime at least in market pricing. When they set the volleyball up like this you are supposed to spike it. However, managing risk is vital and when buying put options as a hedge or more speculative investment you must not put more into the trade than you can mentally afford to lose. You should also not have money you need to live off of in your trading account.

Long only managers think and tell us they are investing "for the long term" however the chart is parabolic and we are at a 40X cape earnings with an All Time High in price to sales of 3.28X for the S&P. A crash therefore is almost guaranteed, and it will freak people out.

Money Flow Sell Divs on Weekly and Daily chart.

RSI quadruple Sell Div on Weekly chart. Clear Sell Div on this daily chart.

Stochastic Sell Div on Weekly chart, sell div building on daily chart. However, there is an oversold condition in the hourly chart following a steep sell divergence lat last week.

That is all.... May the Force be with YOU.

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