Best guess: current situation in MarketI think the market is consolidating for the next push up... but probably won't be consolidating here anymore, rather lower is coming... I'm fully expectant and prepared for LOWER LOWS to come... so if you want to follow idea on Long, do know it's early still...
Tape Wise, market flipped bull mode on October 13th... price going lower is not "PER SE" a bear tape.
I'll update if I sense the stink of bear taking hold of market... his claws printed in Tape... for now price is just controlabelly and smoothly cooling off & falling lower (remember, "velocity" is not all there is to bear tape... yes, bear tape requires velocity, but a relatively speedy down trend is not on its own a bearish tape...)
So: until Tape flips bear and trend is broken, we assume after lower prices, higher ONES will come...
Sp500index
Collapse Of The US Economy DOW AMERICA | Part Two
The Roaring Twenties roared loudest and longest on the New York Stock Exchange. Share prices rose to unprecedented heights. The Dow Jones Industrial Average increased six-fold from sixty-three in August 1921 to 381 in September 1929. After prices peaked, economist Irving Fisher proclaimed, “stock prices have reached ‘what looks like a permanently high plateau.’” 1
The epic boom ended in a cataclysmic bust. On Black Monday, October 28, 1929, the Dow declined nearly 13 percent. On the following day, Black Tuesday, the market dropped nearly 12 percent. By mid-November, the Dow had lost almost half of its value. The slide continued through the summer of 1932, when the Dow closed at 41.22, its lowest value of the twentieth century, 89 percent below its peak. The Dow did not return to its pre-crash heights until November 1954.
Skeptics existed, however. Among them was the Federal Reserve. The governors of many Federal Reserve Banks and a majority of the Federal Reserve Board believed stock-market speculation diverted resources from productive uses, like commerce and industry. The Board asserted that the “Federal Reserve Act does not … contemplate the use of the resources of the Federal Reserve Banks for the creation or extension of speculative credit” (Chandler 1971, 56).2
The Federal Reserve’s rate increase had unintended consequences. Because of the international gold standard, the Fed’s actions forced foreign central banks to raise their own interest rates. Tight-money policies tipped economies around the world into recession. International commerce contracted, and the international economy slowed (Eichengreen 1992; Friedman and Schwartz 1963; Temin 1993).
The financial boom, however, continued. The Federal Reserve watched anxiously. Commercial banks continued to loan money to speculators, and other lenders invested increasing sums in loans to brokers. In September 1929, stock prices gyrated, with sudden declines and rapid recoveries. Some financial leaders continued to encourage investors to purchase equities, including Charles E. Mitchell, the president of the National City Bank (now Citibank) and a director of the Federal Reserve Bank of New York.6 In October, Mitchell and a coalition of bankers attempted to restore confidence by publicly purchasing blocks of shares at high prices. The effort failed. Investors began selling madly. Share prices plummeted.
While New York’s actions protected commercial banks, the stock-market crash still harmed commerce and manufacturing. The crash frightened investors and consumers. Men and women lost their life savings, feared for their jobs, and worried whether they could pay their bills. Fear and uncertainty reduced purchases of big ticket items, like automobiles, that people bought with credit. Firms – like Ford Motors – saw demand decline, so they slowed production and furloughed workers. Unemployment rose, and the contraction that had begun in the summer of 1929 deepened (Romer 1990; Calomiris 1993).7
Before the crash, which wiped out both corporate and individual wealth, the stock market peaked on Sept. 3, 1929, with the Dow at 381.17. The ultimate bottom was reached on July 8, 1932, where the Dow stood at 41.22. From peak to trough, the Dow experienced a staggering loss of 89.2%
Between 1929 and 1933, real gross domestic product per capita plummeted by nearly 30% and the unemployment rate soared from about 3% to over 25%. The consumer price index (CPI) plunged by nearly 25%, with the rate of deflation exceeding 10% in 1932
S&P 500: Bullish Butterfly and Bullish Bat Type 2 ConfluenceAfter a decent bullish type 1 reaction the SPX has come back down to the zone and looks to be showing moderate exaustion. If we can get that MACD to cross and the RSI to curl out of the oversold region we could very well see the SPX stage a rally before the end of this week or at the start of next week. That should take it to the true target of atleast $4120 or higher.
my conclusion for s&p 500 for final bull run wave 5I was staying on cash for awhile. I wanted to short the market before the end market is over.
However I decide to belive the bullish pattern for now.
I don't saying that this will create full blowing scale bull's move.
But few more steps more to go.
You could feel that I wan confused also. Most people would get mixed up signal also.
I had some good sleep and meditation.
Finally I came up with this idea.
Sorry for the mixed signal. I don't think economy will last forever with this high inflation and pce data.
However FED will increase only 25bp in march.
So this hype will last until 22nd of March.
After Fed shows some dovish decision, people will think that we won the inflation but this could be the last bull run.
Is a crash approaching?Hi, I had opened a short on the SP500 last night, all economic factors are pointing towards a recession whether it is interest rates, housing market, inflation or political leaders. This week the US 2 year treasury reached 5%, a level not seen since just before the financial crash. Waking up to the news of Silcon valley bank plummeting due to them announcing a share sale to help hold up their finances. This saw shares across the whole market drop, spooking investors. Shares in the four largest banks dropped more than $50 billion. I believe this could be the catalyst to start the next financial crash, I had already made some predictions on this a few months ago in September 22.
SVB is also a big lender to the tech industry which has built up as the foundations of the current economy.
Maybe I'm wrong - let me know your thoughts!
My todays' view on SPX500 futureHi Traders,
This is my view for today on ES
Micro and macro structure are aligned. Next target will be 3900 and can be reached immediately after a manipulation around Asian Session High or with a retest on 4000 level on a strong SUPPLY zone. (I’ll personally wait for this retest to go short).
Pit, Trading Kitchen
DISCLAIMER:
Trading activity is very dangerous. All the contents, suggestions, strategies, videos, images, trade setups and forecast, everything you see on this website and are the result of my personal evaluations and was created for educational purposes only and not as an incentive to invest. Do not consider them as financial advice.
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My today's view on SP500 futureHi Traders,
This is my view for today on ES
Strong bearish impulse started from 4080 level let me think price will retest 4060 level which is 75%… This is the micro structure.
The higher one’s had been broken at 4026. Fair Value Gap ate 3955 which is today’s target. We’re ranging, No short below 3920, no longs above 4100.
Pit, Trading Kitchen
DISCLAIMER:
Trading activity is very dangerous. All the contents, suggestions, strategies, videos, images, trade setups and forecast, everything you see on this website and are the result of my personal evaluations and was created for educational purposes only and not as an incentive to invest. Do not consider them as financial advice.
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SPX Model Trading Plans for WED. 03/08Fed Fight Fatigue/Reality to Set In Soon?
Markets are still trying hard to get unstuck from the Fed Fight and move on in some clear direction. Despite the apparently big moves and volatility and Fed events, the markets are just where they were in 2nd/3rd week of January! Double check the S&P 500 Index close on Jan 8th-12th, and you can see it.
There is no clear directionality to the markets - not as of now. The increasingly bearish positioning from the retail traders could be pointing to a potential spike up to hunt their stops and/or take out their leveraged positions before any real directionality could set in. Both the bulls and the bears need to be nimble if they want to wade into these markets - a safer option could be to be on the sidelines until the dust settles.
Positional Trading Models: Our positional models are indicating to stay on the sidelines for the day.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops - if any - being active in the overnight session.
Intraday/Aggressive Models: Our aggressive, intraday models indicate the trading plans below for today.
Trading Plans for WED. 03/08:
Aggressive Intraday Models: With all the choppiness in the markets due to the ongoing congressional testimony from the Fed chair Powell, it could be wiser to not engage in intraday aggressive trading for today, especially given the static nature of our trading plans. Nevertheless, for those of you who MUST trade (professional trader? addicted trader? whatever may be your reason), models indicate the below trading plans.
For today, our aggressive intraday models indicate going long on a break above 4012, 3995, or 3984 with a 9-point trailing stop, and going short on a break below 4009, 3990, or 3980 with a 9-point trailing stop.
Models indicate explicit short exits on a break above 3969, and long exits on a break below 4025. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 11:15am ET or later.
By definition the intraday models do not hold any positions overnight - the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform's bar timing convention).
To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) - depending on your risk tolerance and trading style - to determine the signals.
(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please check for yourself how our pre-published model trades have performed so far! Seeing is believing!)
NOTES - HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker's execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance - USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
#spx #spx500 #spy #sp500 #esmini #indextrading #daytrading #models #tradingplans #outlook #economy #bear #yields #fomc #fed #newhigh #stocks #futures #inflation #powell #interestrates #pce
SELL S&P 500Only stating to SELL S&P 500 your choice to execute. ONLY EXECUTE IF YOU SEE THIS POST EARLY ENOUGH AS THE PRICE STILL IS AROUND THE SAME PRICE MORE OR LESS. Check out my previous posts to check my accuracy in the comment section.
Comment down below to get notified when to close the trade.
SPX Monthly.An ominous sign of real uncertainty that hasn't happened in a long time.
Maybe SPX price will not eventually cross green Kumo cloud and support will come from e.g. EMA100 on the monthly chart and later a reset market will show growth.
But tearing up from here is a very precarious position.
US500 Trading Plan - 4/Mar/2023Hello Traders,
Hope you all are doing good!!
I expect US500 to go Down after finishing the correction.
Look for your SELL setups.
Please follow me and like if you agree or this idea helps you out in your trading plan.
Disclaimer: This is just an idea. Please do your own analysis before opening a position. Always use SL & proper risk management.
Market can evolve anytime, hence, always do your analysis and learn trade management before following any idea.
S&P500 Potential UpsidesHey traders, in the coming week we are monitoring US500 for a buying opportunity around 3930 zone, S&P500 long is one of the trade i would love to consider when the DXY shows some downwards as there is a negative correlation between DXY and the Stock Market. Technically i will watch the price action once the price approach the major daily trend.
Feel free to ask your questions in the comment section.
Trade safe, Joe.
S&P500 will be Traded within RangeThis year S&P500 will be going nowhere as it will be traded within a range of around 3400-4000 and probably will end around 3200-3800 by the end of the year. It may test lower point and may touch higher point than the given range, however it won't crash and won't spike either. The reasons for these analysis is based on Index Value Rainbow indicator above. This indicator shows multiple value of base Money Supply or Net Liquidity. For US market Net Liquidity formula is as follow:
NL = FBS - (TGA + RRP)
NL = Net Liquidity
FBS = Fed Balance Sheet
TGA = Treasury General Account
RRP = Reverse Repo
What happened this year is the Fed is reducing it's balance sheet by selling of their asset or doing some quantitative tightening program, which basically reduce the net liquidity value. However on the other side Treasury is also reducing it general account due to debt limit issue, which actually increasing the net liquidity. So the net value of these two opposing factors will impact S&P500 value. As a result the net liquidity will remain the same or slightly down through out the year, as the Fed has more impact than Treasury. As the result, S&P500 will be traded within a limited range. So best strategy used for this situation is swing trading strategy. Where you can buy at the bottom of the range and sell at top of the range.
Analyzing the S&P 500: Market Shows Signs of Upward MomentumAs an investor or trader, analyzing the market and making informed decisions based on that analysis is crucial. In this article, we will delve into an analysis of the market and explore a possible trade opportunity.
The market is a dynamic and ever-changing entity, constantly presenting new opportunities for investors and traders alike. At the time of writing, the market is showing signs of upward momentum, and there are several reasons why this may be the case.
Firstly, we have been in a downward broadening wedge pattern that has seemingly broken out. This pattern is characterized by the formation of higher highs and lower lows, which ultimately leads to a breakout in one direction. In this case, the breakout has been to the upside, which is a bullish signal.
Secondly, the market has retested support and has seen an increase in bull volume heading into the weekend. This is significant as it suggests that buyers are taking control of the market and pushing prices higher.
Thirdly, the current price is looking towards the next Fibonacci level above, which in this case is the 236 fib. The Fibonacci sequence is a series of numbers that is used to identify potential levels of support and resistance in the market. These levels are based on mathematical ratios that are derived from the Fibonacci sequence. The 236 fib is a common level of resistance that traders look out for.
Based on these factors, it would seem likely that the market will continue to move upwards towards the 4300 level. However, it is important to note that this is not a guarantee, and there are always risks involved in trading. It is also worth mentioning that while the market may retest the resistance that broke prices down several times prior, this does not necessarily mean that it will break through this resistance and continue to climb to higher highs.
In conclusion, the market is showing signs of upward momentum, and there may be a potential trade opportunity to go long and aim for the 4300 level. However, as with all trading decisions, it is important to consider the risks involved and to have a solid strategy in place. By analyzing the market and making informed decisions, investors and traders can navigate the ups and downs of the market and achieve their financial goals.