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Yesterday, I posted that the sharp selloff should lead to a final rally. “The magnitude is quite interesting and we may actually get enough capitulation that a two week rally could ensue. Don’t get too excited. If we do get a two week rally from here, it presents the likelihood if it plays out the way the charts are looking, like a final last gasp before all hell breaks loose to the downside.” The two week timeframe is based on what the charts are showing and is more about TIME than MAGNITUDE. I have likely rally targets but they are less important than the fact any upside should run out of steam by May 11th.
2 week rally? This market is in final liquidation right now!. I sense the heard is ready to be spooked right now. The pain is beginning to get intolerable and this present bounce is likely just a reset into the final phase capitulation. All rallies are being sold I don’t see that being the basis for a 2 week rally. Money wants out now.
Hang on to your hats an accelerated bottom is underway:
https://www.tradingview.com/x/0wAYH30H/
Sir Plunger,
I admire your post the other day, in reply to the great call made by Sir Pedro, regarding having made some BIG BUCKS shorting a lot of the growth names.
I do not short the markets, and therefore I am paying the price.
I agree with you more than ever.
The accelerated decline, just in time with the DONE DEAL 50 basis point hike on May the 4th … let’s see if Powell surprises everyone with a lesser than 50 basis point hike, leading to gold rebounding or even skyrocketing.
From now till May 4th, another 10% decline in Nasdaq and S&P is not off the cards.
My best.
GL
We always look forward to updates from you Plunger — it looks like NATO is digging in for a long conflict in Ukraine (UK promised to deliver weapons on a schedule into late 2023) — can the existing financial system survive based on historical observations? Can they hold POG that long?
A manufactured crisis.
A puppet, Zelensky.
Oh, and by the way, AMZN is an example showing/leading the next decline in Nasdaq.
God know how many people are losing on both puts and calls!
GL
As I said, more about timeframe than magnitude. We chop with a slight upside basis for two weeks. Then we move into a break of the lows and significant additional downside.