Unlikely DOW could crash this month. Let's Find out WHY
2 important books will provide the needed guidance now:
Stocks or body in motion will always be in motion unless n until it is forced to stop by an external
force. Sound familiar ?
In the stock market context, it's the Black Swan that can only forced the Markets To Collide, always.
These r 2 world famous books in finance written by 2 arabkia in the US, 1 from harvard n another from NYU.
05/02/2018 01:24
So the BIG Q we must ask ourselves before we decide to dump away all our well researched portfolio
of stocks, like garbage today.
Who n What is the BLACK SWAN ?
Can anybody give some inspiration or hint, please?
There seems NONE yet, right or RIGHT !
The charts r always my trusted opinion in #.
The monthly chart serves as a good guide.
Just look into the DOW's monthly MACD.
It's so bright n wide open indicating good existing momentum. Momentum = Vol X Speed = MU
The drop of 665 pts last Fri could continue down another 600 pts. I hope not.
On a DOW's bad day down 2.6% on last Fri, u witnessed AMZN was up a handsome 2.9% at a crazzy PER 232X. This most expensive giant plc made its owner a far distance #1 richest man on earth.
What say u? Correct. Key word is Rotation. Smart money after selling, have to buy something better.
Many pple confuse between terms like profit taking, correction n crash, especially those with bombastic england.
Usually mkt must create multiple tops n struggle for a few months churning n spinning
at the top range then only a deadly crash will take over.
It was only the Black Monday on Oct 19th, 1987 that DOW really crashed, attributed to program
selling without circuit breaker.
Monthly RSI is another good 1 in #.
DOW created index history setting it at 96.3% days ago in the month of Jan 2018.
At Fri close it was still at a super high of 83.8%.
For PureBEAR to happen, it has to weaken to 69% 1st.
Way Below 56%, u shout Crash, ok.
Then MACD oso will be at DC too to doubly confirmed it.
Wishing everyone, Best of LUCK n HAPPY CNY ...
LOVE U
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