The stock market may already be broken, given the nearly complete collapse of the market’s breadth on December 14. Consequently, with the Federal Reserve likely to increase interest rates on December 19, 2018, the stage is set for an even more explosive move in the markets.
Quantum physicists describe a three-tiered system of laws that govern the universe based on Chaos Theory where the normal state of affairs is a state of non-linear order described as being predictably unpredictable. When things fall out of this normal state of Chaos, they transition, often violently, into Disorder, which triggers a mechanism known as Complexity. It is Complexity that eventually returns situations into Chaos, although the new state of non-linearity that follows a state of Complexity may or may not resemble past periods of Chaos. More specifically, at the point when Chaos falls into Disorder, it is said that events fall off of the “edge” of Chaos.
When we apply this tri-compartmental organizational model to the current market, the only conclusion that seems plausible currently is that the stock market and perhaps the global economic order has now fallen or is on the cusp of falling off the proverbial “edge” and we are entering into Disorder.
JP, Most traders agree that we are on the verge of a major move(probably down). The only questions are when and will there be a bullish bounce before the crash.
But FedEx earnings guidance was well below its prior targets, warning of overseas weakness, citing China and "especially in Europe."
The memory-chip giant sees weakness in DRAM and NAND. Micron gave weak Q2 earnings and sales guidance and cut production and capital spending plans for 2019.
In 2000 and 2008 I went to cash in all of my accounts and avoided the market carnage. The major signal that I followed was the curving down of the 30 week moving average of the QQQ. This time I have been in cash earlier because I am more conservative as I approach retirement. I know its seems counterintuitive, but the QQQ now appears to be entering a Weinstein Stage IV decline. If this is true, the down-trend is just beginning. The only thing to get me back into this market on the long side would be if the indexes can close back above their 30 week averages and the averages begin to rise. This strategy has worked great for me.
In a constant process of learning different strategies for buy and selling stocks . I came across a simple video of " How to NOT get Killed in the Stock Market" . He posted it on Dec 16, 2018 and shows real good on how SPY takes a DUMP . He shows how we were warned of the stock SPY was fixing to take a DUMP along with the rest of the market with. He uses the EMA(8) , MA(20) , MA(50) , MA(200) , OHLC bars and volume. He doesn't use any other Indicators.
He has another simple video called " How to Trade a "Small" Account" which shows how he make's a trade using EMA(8) , MA(20) , MA(50) , MA(200) , OHLC bars and volume.
The bottom right hand box once video has started allows full screen in the video's . Just click to go full screen or click it to get out of full screen.
In 2000 and 2008 I went to cash in all of my accounts and avoided the market carnage. The major signal that I followed was the curving down of the 30 week moving average of the QQQ. This time I have been in cash earlier because I am more conservative as I approach retirement. I know its seems counterintuitive, but the QQQ now appears to be entering a Weinstein Stage IV decline. If this is true, the down-trend is just beginning. The only thing to get me back into this market on the long side would be if the indexes can close back above their 30 week averages and the averages begin to rise. This strategy has worked great for me.
Good info from Dr Wish on Dec 16 . Thank you, four.
Dr Eric Wish of Wishing Wealth has posted more views on Dec 19 and Dec 21, 2018.
Bounce likely–put/call ratio= 1.48
Friday, December 21, 2018 by Dr. Wish
With the put/call ratio at 1.48, 1514 new lows and a T2108 at 8, a bounce is very likely from these oversold levels. In addition, the daily 10.4 stochastics for the QQQ is at 10.
T2108 under 10 again–very oversold
Wednesday, December 19, 2018 by Dr. Wish
This weekly chart shows how rarely T2108 is below 10%. It represents a very oversold condition.
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