It's The End of The World As We Know It and I Feel Fine.....
Whenever you get market sell off's like the one we just had where 10,000 ticks were shed from the DOW at lightening speed people become afraid. The CORV 19 virus isn't helping the matter either. People were already a bit concerned before the markets started to crater. Now they are likely downright fearful. However, we need to look at who is losing the most. It isn't the average fellow who has missed most of this rally in the stock market but rather the ultra-rich who have had ten trillion or so shaved off their wealth in a very short period of time. I am sure they will be alright but you get the picture.
Should we all be running for the exits at the moment?
I don't think so.
We recently entered into what is classified as a bear market but I took a large position at the 20,400 trend line support and it worked out very well in the 2000 point rally.
Is the downside over?
Probably not but we should be more stable than we have been in the past three weeks.
This happened because of debt contagion spreading a little faster than the authorities thought. This is what happens when you make loans to hoards of entities that are not making any money and hoards of entities that normally would not qualify for these loans in normal times.
There are those that would have you believe that we are headed face-first into a deep depression. While this could happen I don't think that it will. The problem at the moment is that the Corona Virus is halting everything and totally disrupting the supply chain.
This is a BIG problem. You won't necessarily notice it for about two months or so (so say May sometime) but notice it you will at some point.
The virus itself has been overstated in my humble opinion. I have been following the science behind the outbreak and yes it has gone parabolic but then again most viruses do. The Flu is no exception. COVID has killed about 4000 people. Most old and with very compromised immune systems which is how most viruses work. So is it the rider of the apocalypse? No. Not even close.
Let it run its course and get back to doing what we do.
My caution to you is to be careful what you invest in at the moment. Everything is falling as people rush back into the safety of treasuries and cash. So I would be buying anything yet until you see the debt contained and the deflationary spiral halted. You knew of where the lines were in the DOW and you could have taken lots of profits on the way down. There were three different areas that I have shown you months ago. Even if you were in a fund you could have used these to book your profits. I hope you did as I never trade without a stop. Do you?
I bought low but I would not tell you to do this just yet although now might be the best buying opportunity presented in the next few years? You could take a chance with a tight stop. However, being nimble is not easy to trade. Right now you should be selling the rises but I don't recommend that either. So there you have it.
Stand aside and look for my youtube channel here.
https://www.youtube.com/channel/UCZMpxiETG8ukFlbpLPcc6pQ?view_as=subscriber
You can hear my thoughts from day to day.
By the way, I am on to bigger and brighter things. I will keep you informed.
Stay relaxed and live well.
Should we all be running for the exits at the moment?
I don't think so.
We recently entered into what is classified as a bear market but I took a large position at the 20,400 trend line support and it worked out very well in the 2000 point rally.
Is the downside over?
Probably not but we should be more stable than we have been in the past three weeks.
This happened because of debt contagion spreading a little faster than the authorities thought. This is what happens when you make loans to hoards of entities that are not making any money and hoards of entities that normally would not qualify for these loans in normal times.
There are those that would have you believe that we are headed face-first into a deep depression. While this could happen I don't think that it will. The problem at the moment is that the Corona Virus is halting everything and totally disrupting the supply chain.
This is a BIG problem. You won't necessarily notice it for about two months or so (so say May sometime) but notice it you will at some point.
The virus itself has been overstated in my humble opinion. I have been following the science behind the outbreak and yes it has gone parabolic but then again most viruses do. The Flu is no exception. COVID has killed about 4000 people. Most old and with very compromised immune systems which is how most viruses work. So is it the rider of the apocalypse? No. Not even close.
Let it run its course and get back to doing what we do.
My caution to you is to be careful what you invest in at the moment. Everything is falling as people rush back into the safety of treasuries and cash. So I would be buying anything yet until you see the debt contained and the deflationary spiral halted. You knew of where the lines were in the DOW and you could have taken lots of profits on the way down. There were three different areas that I have shown you months ago. Even if you were in a fund you could have used these to book your profits. I hope you did as I never trade without a stop. Do you?
I bought low but I would not tell you to do this just yet although now might be the best buying opportunity presented in the next few years? You could take a chance with a tight stop. However, being nimble is not easy to trade. Right now you should be selling the rises but I don't recommend that either. So there you have it.
Stand aside and look for my youtube channel here.
https://www.youtube.com/channel/UCZMpxiETG8ukFlbpLPcc6pQ?view_as=subscriber
You can hear my thoughts from day to day.
By the way, I am on to bigger and brighter things. I will keep you informed.
Stay relaxed and live well.
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