Re: Bear Cave 2 (Bull Allowed)
For traders!
Where the Money Goes in a Market Crash
Published October 18, 2019 - 7:30 AM
The S&P 500 peaked in late July.
The S&P 500 peaked in late July.
Since then, it has been stuck in a wide trading range between about 2850 on the downside and 3020 on the upside. As we approach the upper end of that trading range, and as technical conditions start to move into overbought territory, the odds of a significant decline increase.
That decline could start any day.
In fact, several months ago, I marked October 21 as a probable start date for that decline…
The next decline phase is likely to be a “rotational” bear market. Money is going to come out of the market’s best-performing names – those momentum stocks with wildly expensive valuations – and rotate into the beaten-down “value” names that have done nothing all year.
In other words, the best-performing stocks of 2019 are going to get hit, and this year’s worst stocks are going to outperform everything else…
Even though the S&P 500 is trading near its all-time highest level ever, many stocks and many sectors have already been through their own bear markets. Many retail stocks, for example, are down 50% or more in 2019. They’re trading at decade-low valuations. Many oil and gas stocks are in the same boat.
https://www.jeffclarktrader.com/
My LT data chart - Please note - FCG, XES, OIH..... Looking to buy some FCG, but all could make a 20% or higher run soon..... Some are already on a buy signal... XES went 10 days above the 10 DMA ( a buy signal for me) and then 17 days below and a lower low.... Back above the 10 DMA again, but I'm going to try FCG.
Good Trading!
Look how FCG and XES moved up in 2007/2008 before the Bear Market really got going. Everything got sold off later.... However, look at the spike and will it be different this time.... Is the rotation getting closer?
https://stockcharts.com/h-sc/ui?s=%2...80&a=694004329
I don't know what will happen this time, I'm just pointing out what happened the last time - since the point here is a rotation in to value stocks about to happen? We shall see..... No matter what happens I trade the trend, and it overrules everything else.... (price no matter what the volume)
There is only one side to the market, and that’s the right side. Jesse L. Livermore
Last edited by robo; 10-18-2019 at 08:13 AM.
“There is only one side to the stock market; and it is not the bull side or the bear side, but the right side” Jesse L. Livermore
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