The media is cheerleading the “all time highs” hit this week and attributing it to “market confidence in an economic recovery.” What will be their opinion if the market goes into a double digit crash?
I think we all know the answer but it will no doubt be entertaining to watch the media, the Dems, the Circle Back Girl, and all of their colleagues try to explain how Biden took over a surging stock market with all time highs and then it tanks shortly thereafter.
What I wanted to share was that the S&P 500 is behaving almost exactly like it did exactly 12 months ago right before the big crash.
The chart above is the S&P for 2020 vs 2021 which shows how there was a strong uptrend from the prior quarter coming into January.
The S&P made a new high then proceeded to sell off in the last week of January. Then, it rallied off of the 50 day moving average in the first week of February, making a new high on the 5th. From there it traded up with only marginally higher highs but the slowdown in upward momentum was visible as the index just traded sideways.
Then, in the last week of February the sell off started and this time it crashed through the 50 day moving average and kept selling into March.
The 2021 chart shows many similarities thus far. There was a strong uptrend, a new high in January, a selloff in the last week of January, and there was a strong bounce the first week of February with another new high today.
Will the markets trade mostly sideways over the next couple of weeks and set up for a February drop?
We will have to see but I like those odds.
In my prior post I showed that the FANG stocks are almost all trading off of their all time highs and not participating in this rally. By the way, that’s what happened last year before the crash as well.
The media is cheerleading the “all time highs” hit this week and attributing it to “market confidence in an economic recovery.” What will be their opinion if the market goes into a double digit crash?
I think we all know the answer but it will no doubt be entertaining to watch the media, the Dems, the Circle Back Girl, and all of their colleagues try to explain how Biden took over a surging stock market with all time highs and then it tanks shortly thereafter.
What I wanted to share was that the S&P 500 is behaving almost exactly like it did exactly 12 months ago right before the big crash.
The chart above is the S&P for 2020 vs 2021 which shows how there was a strong uptrend from the prior quarter coming into January.
The S&P made a new high then proceeded to sell off in the last week of January. Then, it rallied off of the 50 day moving average in the first week of February, making a new high on the 5th. From there it traded up with only marginally higher highs but the slowdown in upward momentum was visible as the index just traded sideways.
Then, in the last week of February the sell off started and this time it crashed through the 50 day moving average and kept selling into March.
The 2021 chart shows many similarities thus far. There was a strong uptrend, a new high in January, a selloff in the last week of January, and there was a strong bounce the first week of February with another new high today.
Will the markets trade mostly sideways over the next couple of weeks and set up for a February drop?
We will have to see but I like those odds.
In my prior post I showed that the FANG stocks are almost all trading off of their all time highs and not participating in this rally. By the way, that’s what happened last year before the crash as well.
Biden Economic Collapse Watch - Signs of a topping market -NASDAQ hits all time highs without FANG stocks https://patriots.win/p/12hR2tWWsi/biden-economic-collapse-watch--s/
All of the charts are from investing.com if you want to see it for yourself.
The Chinese will pump up the market.
It will be a while before it tanks. Everything is rigged. Everything.
Yupp! 100% accurate.