Dot Com ver2? 1929? Great Depression?
The NASDAQ has risen significantly this year however it is quite possible and potentially likely we are near a top of the market.
The Dow Jones (US30, DJI) has dropped significantly over the last few days where its ATH was 35042 dropping to 33400
The Dow made a lower high at 34835 and is heading towards the 33400 zone.
Dow theory suggests a market top usually occurs when a market Drops greater than 3% rises 3% and drops below the first low making a lower low.
We have to remember that the DOW JONES consists of Americas largest companies which make up a significant market share across all sectors which also may suggest Wall Street/Hedge funds opinion of the broader economy.
Could possibly be a rotation? Possibly yes however we are highly likely to correct.
The Daily time frame shows that there can be a significant correction in the near future.
Technical
Fundamentals
A significant portion of CEO's, Insiders, Directors of the fortune 500 have been selling a significant amount of stock over the past few weeks.
Jeff Bezos has sold over 1B in Amazon shares
Mark Zuckerberg has sold over 1B in Facebook shares.
Directors from Google and Microsoft have also sold a significant portion of their shares.
We must also understand that near the top of the market the laggards/majority will end up "holding the bag". The top of the market throughout history featured low interest rates, high speculation, overleveraging.
In the current market we have seen interest rates being low, IPO's , SPACs, high speculative trading, cryptocurrency, NFTs, trading cards shoot up in price where they may not inherently provide people with genuine value.
Interest rates are also significantly relative to this decade. If interest rates are high will people be able to invest as the cost of living/goods & services will rise?
If the Equities markets crash, it will most likely initially bring down the Cryptocurrency Market
There are various factors which can signify a major market correction is coming to play, so stay safe. Invest in your family, health and happiness as "money" doesn't really exist but it's the debt that motivates us.
Money is also just a social construct .
Stay safe everyone :)
The NASDAQ has risen significantly this year however it is quite possible and potentially likely we are near a top of the market.
The Dow Jones (US30, DJI) has dropped significantly over the last few days where its ATH was 35042 dropping to 33400
The Dow made a lower high at 34835 and is heading towards the 33400 zone.
Dow theory suggests a market top usually occurs when a market Drops greater than 3% rises 3% and drops below the first low making a lower low.
We have to remember that the DOW JONES consists of Americas largest companies which make up a significant market share across all sectors which also may suggest Wall Street/Hedge funds opinion of the broader economy.
Could possibly be a rotation? Possibly yes however we are highly likely to correct.
The Daily time frame shows that there can be a significant correction in the near future.
Technical
- Daily All Time High
- Bearish Divergence on larger time frames
- Decrease in Daily Volume
- RSI MACD Money Flow indicating potential reversal
Fundamentals
A significant portion of CEO's, Insiders, Directors of the fortune 500 have been selling a significant amount of stock over the past few weeks.
Jeff Bezos has sold over 1B in Amazon shares
Mark Zuckerberg has sold over 1B in Facebook shares.
Directors from Google and Microsoft have also sold a significant portion of their shares.
We must also understand that near the top of the market the laggards/majority will end up "holding the bag". The top of the market throughout history featured low interest rates, high speculation, overleveraging.
In the current market we have seen interest rates being low, IPO's , SPACs, high speculative trading, cryptocurrency, NFTs, trading cards shoot up in price where they may not inherently provide people with genuine value.
Interest rates are also significantly relative to this decade. If interest rates are high will people be able to invest as the cost of living/goods & services will rise?
If the Equities markets crash, it will most likely initially bring down the Cryptocurrency Market
There are various factors which can signify a major market correction is coming to play, so stay safe. Invest in your family, health and happiness as "money" doesn't really exist but it's the debt that motivates us.
Money is also just a social construct .
Stay safe everyone :)