richard5za wrote:John, Aeden, Higg, Vince,
I have been very surprised at the crash / correction of Wall Street.
The stock market / Dow initial chart was very similar to 1929. You would need to be a scholar of stock market history to spot the difference if all figures were removed!
The waterfall crash has exceeded 1929 by quite a long way. I keep expecting a platform for a bounce but nothing happens. Last Thursday I thought OK lets see a bounce, but nothing! Maybe due to technology?
Too violent for me. I stopped trading early in March. My primary responsibility being to preserve my capital
As at Friday close Dow futures are down about an additional 4% plus the Friday decline!
Has anyone a view ????????
Yes, I have one, but it's not like last weekend where I agreed with Vince that the market should very likely go down on Monday.
We can go over to the market historians and see statistics like the following:
"FYI, the $VIX had never fallen on a day the $SPX dropped over 3%...Today, the $SPX fell -4.34% while the $VIX dropped -8.28%."
"The S&P 500 has lost more than 4% on 48 days since 1962. On the "best" of those days, only 26% of NYSE securities advanced on the day. Today, more than 47% of them rose."
This would indicate deep, deep oversold and that a huge snap back rally is likely based on history.
But, on the other hand, I agree with you that the waterfall crash has exceeded 1929 by a long way. Why can't deeply oversold become even more deeply oversold? I think it can for sure, as for sure on the way up valuations exceeded all that have ever been recorded by many measures.
Having said the above, I'll digress for a bit from the more immediate and practical and say that it's my bias that if the market does crash next week despite all the deep oversold and history to the contrary, that is more evidence that the world is entering into a new dark age.
Back to the practical and the immediate issue at hand. I see 4 possibilities for next week:
The market gaps higher on Sunday night and continues up.
The market follows through to the downside in the first hour Sunday night, then rallies the rest of the day.
The market follows through to the downside the first hour Sunday night, then makes a good rally attempt that fails later in the session.
The market continues lower and crashes.
I have no position in any market now. On Friday, I sold all of my silver position taken on Thursday.
I will be trying options 2 and 3 Sunday night unless something happens between now and then to change my mind. If the market morphs into option 4, I will have an order ready to sell at the market.