Those of you familiar with BEAR market would know what $SP went up yesterday and why we should all expect high volatility for the rest of tis yer and possibly beyond 2020.
Her is some facts on why this down turn continues and why we are in BERA market.
Even without CoronaVirus market would have fall, but maybe a bit later in the year. The global economy was lardy sick before CronaVirus, and without Fed's injection would have collapsed in Sept 2019 which have grown to over $100 billion per night to support the largest financial bubble in human history with global derivatives estimated at $1.2 quadrillion.
Either-way the downturn has been triggered and the downward trajectory of the market will continue. The wild swings to downside and upside are norm as when market is oversold, there will be a dead cat bounce to allow smart investors to get out while they can.
Unfortunately some naive investors still think there is going to be a round to the top before the Crona Crash.
Who bought on Friday: part form Naive investors, many momentum driven Hedge Finds bought the bulk of the stocks last Friday. Why this is important? Because Hedge Funds don't keep Long stocks and they will sell as soon as they sense the market may turn. Possibly this week, Wednesday after the central banks fizzle or rescue falls flat. When it happens expect a big dup of stocks by Hedge Funds that would spark a biggest sell of that entire last week.
How to trade Bear Market 101:
1-Short on bounce back to the top
2-Cover at open when dropped high (e.g >-2 %) at open
3-Short again at close when market adjust to (e.g <-2% )
4-If holding shorts and market goes up, don't panic, wait for the next down
5- All bounce backs are technical and fake. Don't fall for it. Bear market is very volatile, so 2-3% down and up are normal.
Watch out for intraday technical correction during trading hours as that is whet you can make most money
Her is some facts on why this down turn continues and why we are in BERA market.
Even without CoronaVirus market would have fall, but maybe a bit later in the year. The global economy was lardy sick before CronaVirus, and without Fed's injection would have collapsed in Sept 2019 which have grown to over $100 billion per night to support the largest financial bubble in human history with global derivatives estimated at $1.2 quadrillion.
Either-way the downturn has been triggered and the downward trajectory of the market will continue. The wild swings to downside and upside are norm as when market is oversold, there will be a dead cat bounce to allow smart investors to get out while they can.
Unfortunately some naive investors still think there is going to be a round to the top before the Crona Crash.
Who bought on Friday: part form Naive investors, many momentum driven Hedge Finds bought the bulk of the stocks last Friday. Why this is important? Because Hedge Funds don't keep Long stocks and they will sell as soon as they sense the market may turn. Possibly this week, Wednesday after the central banks fizzle or rescue falls flat. When it happens expect a big dup of stocks by Hedge Funds that would spark a biggest sell of that entire last week.
How to trade Bear Market 101:
1-Short on bounce back to the top
2-Cover at open when dropped high (e.g >-2 %) at open
3-Short again at close when market adjust to (e.g <-2% )
4-If holding shorts and market goes up, don't panic, wait for the next down
5- All bounce backs are technical and fake. Don't fall for it. Bear market is very volatile, so 2-3% down and up are normal.
Watch out for intraday technical correction during trading hours as that is whet you can make most money
