Two major factors today that were not relevant decades or even just a few years ago: 1) The Fed's "open and blatant manipulation" and embracing of MMT. 2) Machine algorithm trading was not even in its infancy. Today, 90-95% of all trading is done by machines. Machine learning can only go so far, and it's clear most of the trading is corrupt and not transparent. Bring back fractional stock quotes, bring back the "open cry" pits with options trading, and make insider trading illegal within Congress, and those things could Make America Great Again!
Another major difference is that the MMRI recently hit its highest point in 16 years, yet it barely priced in such risk rising in such a short period of time. This could be the tipping point for the market. Instead of buying the dip from now, it's selling the rip. Kinda difficult to convince the participants of the market that stocks go down now, after a century of following "stonks only go up" mentality...and the people lose, while the rich win, because people don't know how to play the market to the downside. That's why they call it a "wealth transfer".
Trading by machines is through programmed algorithms. Know the code of those algorithms (what causes them to buy or sell) and you can control (manage) the markets by controlling the data inputs.
So, no matter the accuracy of the technical data there is, they will just keep ignoring it until it all crashes down. Then it will be the blame game, finger pointing and nothing will be resolved, no one will go to jail and America will enter a phase of decline. They are still in court over the 2008 debacle,................... who went to jail then ????? No one, what got resolved? Nothing..............they just will push the repeat button again for this mess getting dumped on us. Get your umbrellas out folks !
This cycle has been different because the market knew they just had to hang on until the end of the tightening cycle, which it has. In 2008 the market didn’t know the Fed would bail it out to such extent.
The Fed has already tipped its hand when it bailed out those failing banks and by already admitting they plan to cut rates in 2024.
Plus a war maybe on the horizon that could cause a shift to the downside and a recession/depression is looming very bearish indicators plus the Fed pivot lead to a crash of epic proportions before moving to the upside!
I wonder what would cause the market to flip and go to zero momentum. Perhaps the Fed will pivot and that will lead to a market crash everytime the Fed has pivoted history has shown us that markets react and over correct in the short term followed by long term bullishness!
Great Information. Thank you gentlemen.
Two major factors today that were not relevant decades or even just a few years ago: 1) The Fed's "open and blatant manipulation" and embracing of MMT. 2) Machine algorithm trading was not even in its infancy. Today, 90-95% of all trading is done by machines. Machine learning can only go so far, and it's clear most of the trading is corrupt and not transparent. Bring back fractional stock quotes, bring back the "open cry" pits with options trading, and make insider trading illegal within Congress, and those things could Make America Great Again!
½, ¼, ⅛ and 1/16th's! 😉
Silence DoGood
☕✝️
Another major difference is that the MMRI recently hit its highest point in 16 years, yet it barely priced in such risk rising in such a short period of time. This could be the tipping point for the market. Instead of buying the dip from now, it's selling the rip. Kinda difficult to convince the participants of the market that stocks go down now, after a century of following "stonks only go up" mentality...and the people lose, while the rich win, because people don't know how to play the market to the downside. That's why they call it a "wealth transfer".
Trading by machines is through programmed algorithms. Know the code of those algorithms (what causes them to buy or sell) and you can control (manage) the markets by controlling the data inputs.
I love the charts and technical analysis.Data always wins.
I love how you showcase other peoples work on your channel. Thank you. Great work. Happy Thanksgiving.
Wall street is in denial as usual. Wall street is attempting to jawbone the markets higher. So, yes, this is not real nor sustainable.
Amazing insight
Wow! Thanks!
So, no matter the accuracy of the technical data there is, they will just keep ignoring it until it all crashes down. Then it will be the blame game, finger pointing and nothing will be resolved, no one will go to jail and America will enter a phase of decline. They are still in court over the 2008 debacle,................... who went to jail then ????? No one, what got resolved? Nothing..............they just will push the repeat button again for this mess getting dumped on us. Get your umbrellas out folks !
excellent analysis
I dont understand any of this.. all these charts dont make sense if u ask me
This cycle has been different because the market knew they just had to hang on until the end of the tightening cycle, which it has. In 2008 the market didn’t know the Fed would bail it out to such extent.
The Fed has already tipped its hand when it bailed out those failing banks and by already admitting they plan to cut rates in 2024.
Plus a war maybe on the horizon that could cause a shift to the downside and a recession/depression is looming very bearish indicators plus the Fed pivot lead to a crash of epic proportions before moving to the upside!
War is good for the market
In the long haul yes because more money will be poured into the markets. Short term though markets get spooked with geopolitical tensions!
I wonder what would cause the market to flip and go to zero momentum. Perhaps the Fed will pivot and that will lead to a market crash everytime the Fed has pivoted history has shown us that markets react and over correct in the short term followed by long term bullishness!