QE release, long SnPAs requested by many to take a look at equities market, i shall do some basic analysis from now on on the shares market in US and globally. Equities Market just surged for futures of S&P500 because the Federal Reserve Unveils Unlimited QE Amid All-In Effort to Confront 'Severe Coronavirus Disruptions'. I think this is the first time its ever done an unlimited QE and this could help revive the economy. Its gonna be a massive bailout.
The Fed will buy unlimited amounts of Treasury bonds, and purchase corporate and municipal debt for the first time, in an historic effort to defend the U.S. economy from 'severe" conoravirus distruptions.
SNP
Short on S&P500 but long term buy opportunity afterThe S&P 500 index is a benchmark of American stock market performance, dating back to the 1920s. The index has returned a historic annualized average return of around 10% since its inception through 2019 and thats a good representation of the market.
Compared to fixed deposits, yearly returns ranges from 0.5%-2%. While that average number of 10% may sound attractive, timing is everything - get in at a high or out at a relative low and you will not enjoy such returns. Inflation is around 3.15% yearly so the actual returns is only at around 6-7%. That said, its still better than parking your money in the bank and gaining that 0.05% interest.
So thats why its important to time the market and enter at the right time. If you had just entered into the stock market 1 month ago, your probably would have lost 30% of your funds that you use to enter.
#SPX #SNP500 Full Market Analysis (Must Watch!) #RecessionTraders, We are watching history in making. S&P500 index has fallen heavily however there may be light at the end of the tunnel. This analysis is from pure technical point of view. Hit the like button and subscribe if you enjoyed this analysis. Comment below and let me know what you think of this analysis and what is yours? I welcome all comments, feedback, ideas and sharing of knowledge.
Have a great trading week!
S&P500 due for new lowsYesterday was a very significant day for the S&P500 (/ES futures), and the associated indexes. Intraday, it was an interesting experience to see the index flat out, in some sort of anticipation, then react with a surge on the surprise news break of a 50 point rate cut. And only to be digested badly with more fear being stoked and more downside that followed to close near the day’s low. While the candlestick pattern shows a bearish follow through, perhaps what is more important is that the relief rally is done and dusted.
Previously marked out green box is where the relief rally was expected to end. The technical aspect with that point was multi-fold... with a meeting of the trail stop, and a resistance level, it was also a point to break the downtrend (within a large range). In the intraday 4H chart, it was also the meeting point with the 55EMA, which of course, it had failed. The close of yesterday’s candlestick was also a breakdown out of a wedge. Remember that previously, the S&P500 broke up and out of a rising wedge, only to re-enter the wedge, and follow through to exit the other side. This story was completed within 7 days last week. And with the second breakdown of the wedge, more downside can and should be expected.
All these point to a lower low , by middle of next week, as marked out by the 🔴 red circle 🔴. And perhaps even further down towards 2500.
BEWARE!
CHINA PETROLEUM & CHEMICAL CORP (SNP) DailyDates in the future with the highest probability for price direction reversals
Rebound next for S&P?What a week! The S&P tested the 50% retracement down like a falling knife and ended with a bullish pin bar. It appears that the markets are poised to rally next. However I would trace my stops up and be wary that a retest of the long term trendline is possible since the corona virus fear has yet to peak.
ES / S&P500 to Retrace from virus effects...Technically, the S&P500 (and its corresponding /ES futures) are bearishly divergent iin the MACD in fractal time frames of 1h, 4h, and evenn Daily charts. Shown here is the 4h chart of /ES and it gapped down in Asian opening hours after a lond weekend holiday. This appears to be a Gap and Run scenario, at least at this point of time.
This move appears to have been triggered by Apple's warning of missing sales.
The retracement is firmed upon breaking down of 3370, a bounce off 3350, and looking for support bout 3290.
The DJI and NASDAQ should similarly follow.
Heads up...
SnP 500 Come to Papa!So if you haven't heard.... the coronavirus zombies are causing helicopter crashes in Los angels. Basketball gods are dying.
The New York Times tries to take down president trump.... again.
The scary Fed is speaking this week.
rockets were fired at U.S Embassy in Iraq. Sell everything right?
I like snp here on a washout early monday.
looking back at previous -1+% moves on the 1 hour chart - all seem to be buying opportunities. Unless this time we see multi hour -1+% sell off Monday, I believe betting on some calls bought Monday when we are down 1.5% on SPY could be exciting
1) corona virus is less harmful than the common cold statistically speaking and recent news suggest an appropriate response and a handle on the virus despite ignorant media types and chicken littles. This will be a nonfactor in 2 weeks.
2. RIP kobe
3. The market has learned its lesson trading on the deceitful mainstream media headlines about trump... Bernie Sanders is getting steam but overall that's a win for the market. Bernie cannot win a general against trump.
4. inflation in asset prices? EPS of stocks are rising to historic levels as we have historic globalization, automation, and computerization... That makes sense to me, not to mention more people and money chasing fewer stocks historically.
5. rockets at the U.S embassy during our occupation of the middle east is not a new thing. This was to be expected as well. - Last time this happened - buy opportunity
I am betting the fed doesn't say something stupid. I am also betting earnings are impressive this week which will make this gap down early Monday look like a good trade. GDP on Thursday too!
My thesis goes to hell if all of sudden if
1. the mortality rate of coronavirus jumps to 10%+ with 5000+ infected all over the world (again unlikely due to overreaction now)
2. The fed makes uneasy comments about rates or says something stupid... (again)
3. Earnings come in mostly to the downside and guidance isnt good
4. GDP is soft.
Stocks looking very overvalued fundamentaly and Technically.I do not want to get too into depth on the SPX as this is mainly for my personal future reference however I will say that I believe the SPX will reach a high at 3400ish and go no higher than 3800$.
I also believe there will be a downturn of around 40% from the highs in the next year meaning I think the bottom will be in at around 2100$
The bottom will take appox 1year.
There are also plenty of fundamental reasons for the SPX to fall and that is what this post is mainly capitalizing on I am just using FIB ratios as targets for risistance and support.
It would be foolish to be longing this stuff right now.
Buy back in the end of 2021 and you should be fine.
*Disclaimer, This is not financial advice.
Dont trust some random guy on the internet but please do yourself a favor and do some research if you have a large portion of money in stocks right now
SPY: Crossroads
As of now SPY is still considered bullish. There are two distinct paths from here on through the holidays. If the stock doesn't break the ATH before December 27th, it is highly likely to go sub 300. Breaking the ATH in said timeframe could send the stock flying to 325-340. If the stock closes below the first guide-line, it is likely to cross the second guide-line as well (to touch down on 'b').
– two gaps still to be filled sooner or later (pan down for 2nd gap)
– the higher low isn't distinctive enough and is therefor rated 'neutral'
– current ADXDI shows assets leaving the stock and sell-volume picking up substantially, keep observing for changes
– RSI is neutral to bearish
– MACD returning to bearish to neutral
– stock is likely to reverse for a second leg before attempting another run-up (see RSI)
– PSAR series on the 4H has a bearish trajectory
Current indications point to a clear direction to be chosen soon. The weekly and monthly chart show a possible melt-down of the markets in spring 2020 (20-40% drop). This is echoed through the likes of Wilshire 4500 (market value) and the Dow Jones (industrial).
I'll be revisiting this post once every 1-2 weeks for updates.
(lines and connections have been averaged on step-line over log for higher precision)
SPX Short Term Bearishness*Disclaimer - This analysis alone DOES NOT warrant a buy or sell trade immediately. Before you enter any trade in the financial market, it is very important that you have a proper trading plan and risk management approach.
The sharing of this idea is neither necessarily indicative of nor a guarantee of future performance or success.
SPX Look For New Highs To ContinueHello Traders,
We confirmed that the first new high was just part of a running correction pattern and not actually an impulse.
Now we are in the third impulsive move and I am expecting it to continue to around 3350 / 3400 for now.
Thumbs up & follow for more!
Good luck