Are Stocks About To Pop or Drop? (Chart Pattern) What do you think? By Gregory Mannarino

in money •  7 years ago 

me smiling.png

OK, so this is what we have.
At the time I am writing this article the stock market is in Rally mode on the back of a falling dollar and rising crude oil prices.

Have a look at this chart below, I find this particular pattern circled on the right to be interesting.
What do you think?
Pop or Drop?1.png

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Indeed just what is was thinking. We made a lower low, and if we now make a lower high - trend should be bearish moving forward.

Even if we make a high at the 2400 level, it will still be neither bullish nor bearish but uncertain again.

Check out my blog if you want boys, i do analysis like this as well.

Peace.

If I could print all the dollars I want out of thin air, knowing it's going to Crash, wouldn't I be buying up every Stock I could get my greedy little hands on...???
@pocketechange

If memory serves, I believe the US Gov has been bailed out twice since existence. Once for sure, it was bailed out by JP Morgan. THE JP Morgan. We're seeing something very ominous taking place. JPM holds a huge amount of silver and possibly gold. Could it be what we are witnessing is a direct affront towards capitalism and our way of life? The gov has put so much fiat money out there, our debt is bigger than any public company, bigger than anyone entity but the IMF to bail out? You look at the tech sector alone, the tech revolution is still very young, could the tech rev be too big to fail? Everybody has some form of reliance upon technology. If it goes down, the world stops for a bit. The changes occuring are new and uncharted and happening very rapidly. Its difficult to understand and see the end game other than one true world order on a global scale. For that to occur, the US must be reliant?

Yeah, I was just going to point-out - there are some MAJOR gaps going on there.

I am not a chart gal -- but I quite remember seeing the same chart everyday I read the newspaper. Then in 2006ish - 2007, the lines switched places (inverted -- yeah I learned this word after the fact). If I had not seen the pattern change, I would have proceeded with a deal that would have had me 1.9 million in bankruptcy.

This was not a time period I wish to re-experience. The 1980's were nothing compared to this:

http://www.cbpp.org/research/economy/chart-book-the-legacy-of-the-great-recession

I also say to become your own Central Bank... There isn't much risk in getting your hands on a little Pocket Change... I just bought 2,000 Nickels on Saturday for a 100 dollar, Federal Reserve (Debt) Note...
@pocketechange

  ·  7 years ago (edited)

Yes good idea holding coinage as it is produced by the mint and not the federal reserve. Be careful what you buy as it will only be worth scrap value. Look into getting war Nickels 1942-1945. These contain 35% silver which is your true store of wealth and obviously you becoming your own central bank.

I have more war nickels than anyone I know... I have it all, including Common Coinage that will increase in buying power when the Paper and Digital Fiat Dollars crash... It's not the melt value of the metal, just like it's not the Paper value of our Debt Notes...
@pocketechange

Thanks. I will followup on this one.

You are appreciated.

I feel the same way. It's very similar. Yes, it's time to be your own Central Bank.

They want this pony show to go on as long as possible and then they will bring it down when THEY are ready. I think they will go up a SMALL bit more before they drop. I Think of the 1988 economist magazine with the Phoenix rising from a pile of ashes and a gold medallion with the year 2018 in big numbers. I think they need to keep this casino going IF POSSIBLE until then. UNLESS THEY BRING IT DOWN EARLIER AS AMO TO BRING DOWN TRUMP. However I do not believe Trump can be brought down. He will serve two terms. Thanks for the post. What do others thing. Would love to know.

In 2015, Greg Hunter kept asking every guest if that was the yearthat the crash would happen....pretty much everyone said yes. It didn't happen. Why? Because of the reason you have given. 'They' were not ready!!

As for Trump, I really don't know about 2 terms. He's really up against it. How can one man fight so many? He needs to get reinforcements into the White House ASAP and drop some truth bombs!!!

I listen to Greg Hunter and have high respect for him. I agree that Trump does need to drop some truth bombs. I believe as Trey Smith (Youtube) believes that is was given to us by God as our LAST and final hope for America. God Biblicly has used the least able folks to make them His spokesperson. Abraham could not speak well and God used him. Of the 12 disciples on Judas was the most qualified. So too may be Trump. He comes across as a clown and un-presidential yet some think he is sounding the Trumpet and shining light on the evil of this country. Thanks for the great reply. - Troy

Pocket Change will rise out of a pile of Federal Reserve (Debt) Note ashes...
@pocketechange

Interesting perspective. You may be on to something. Again thanks.

Not pocket change - - - Bitcoin.

Anything can happen for sure, but based on my analysis it is going higher and likely to make a new high
S&P.jpg

Anything could happen for sure. I am still kind of thinking this may be a dead cat bounce. It seems on the hourly we are reaching "overbought" territory, The Macd seems to be topping. Maybe just a pull back (consolidation) before a move higher? I am net short this market but I am hedged well enough that a move higher would only give me more to invest on the short side! Trade green!

I bought Puts on the last drop of the SLV. Got the sell signal from watching the COT report and the Evolution System. This was my first options trade, sold too early but the profits from trading options is mind blowing. Thank you @marketreport for educating me/us.

Not sure but I say it may rally a bit and then drop.

Get your hands on a little Pocket Change while it's still one hundred cents on the Fiat Dollar...
@pocketechange

perfect time to buy the dip :D

My concern with that is I do not believe this run-up in crude is sustainable, and we could also see a short term bounce in the dollar. Be ready for anything.

Oil is Abiotic. It is found deeper than any known fossil. It flows upwards from the core where its created via centrifugal forces...depleted oil wells eventually refill. This is why we haven't hit peak oil and why there is an over supply

Oil is also 'dead' due to the changes in technology. Lithium is the new 'oil'

By holding some Pocket Change, I'm thinking it's the "overlooked" hard asset that will reach Fair Market Value once the Paper and Digital Dollars crash...
@pocketechange

  ·  7 years ago (edited)

I gotta disagree with your theory on pocket change. I've been thinking about it for a couple of days now - and the majority of it is still FIAT money. Sure, there's some metal value in it - nickel. But, by and large, the rest of it is not made of anything very valuable - not even copper.

So, unless your "pocket change" actually has 40% or 90% silver, as indicated by the right year & mint marks - it's going to be worth it's value in weight, and not much more. What does 1 ton of tin go for on the metals markets? IDK, I don't care - I don't want a ton of tin.

Food rations will be far more valuable that old, useless, FIAT coins - unless they are silver, or MAYBE nickel.

I have my fair share of silver, but the Pocket Change I refer to isn't about the melt value or the value of the metal, just like paper debt notes aren't about the paper having Silver threads... It's more about having a Medium of Exchange that most people have "some" of... When the Paper and Digital Fiat crashes, we'll surely need something most people have in a jar at home...@pocketechange

Just keep tight stops in place. Or hedge the fool out of it.

I am biased to Drop!

let's fill the gap, then a parabolic move on the upside to breakout from the uptrend established since 2009 then the crash will occur! get ready folks!

When the Fiat Paper and Digital Dollars crash, you better hope you have your hands on some Pocket Change...
@pocketechange

pre 64 u.s. change and pre 68 canadian change ;-) and a pocket full of shells

Personally I have never understood any of the market action since last November!

Just more stealth QE

DOW will probably maintain 21k to 22k points in the next few months.

thank you Greg we love you

Looking like a Brexit type rebound. Too much free money on the sideline. EM looks to be holding up despite Brazil, but OPEC may take it down end of week.

I'll be shocked if equities pop to new highs now, we got the fed meeting June 14, summer swoon, ect. we'll see a rally to all time highs this autumn.

Retest of that level then down, drop is my bias but ive been wrong many times!

Resistance is around 2400. Good risk/reward ratio, but i am going to probably pass this, since market is resilient and manipulated, it can easily go higher.

I agree that this would go either way based on the market maker.

The movement seems to coincide with the fall of the dollar. I thinks it will stay high due to fall in dollar continuing. Which will also mean that it should have some positive action in crypto and precious metals. It will not be completely linear, but positive none the less.

The Dollar may be falling, but who cares if you can print as much as you want to buy up all the stocks you want...??? The Crash is coming... If I could print money out of thin air knowing it will crash, wouldn't I be buying every stock i could get my greedy little hands on...???
@pocketechange

The Rally will continue, as longest trump keeps making BILLION dollar deals overseas he will continue being president.

If the market drops by over 1000 points,the Fed will come to the 'rescue' by not raising rates and having forward guidance of not raising rates in the near future and if things really get bad they may launch QE4 probably in a stealthy manner.I forsee the Dow in the next few months moving much higher due to possible Fed stimulus described above.Also lots of money sitting in the sidelines not invested in the stock market.This money may come in if they see a major move up in equities (and smart money going into precious metals and PM stocks)and Dow could go beyond 25000 before eventually crashing.

Thanx... re-steemed

I think, dropping is easier than climbing. Especially in times like now. It all has this bubble taste (not bubble gum) right now.
On top of that, the dollar decline is eating your profits away, if your stocks are traded in dollar. Then you gain 4% on the stocks price, but the dollar has lost 3% during that time, leaving you with very little real profit.
But I guess you realize that yourself.

nice post,good job my friend............!

im learning. I am waiting for a drop.

Yes, huge distribution day, a ceiling, have to check but price action might not of closed the gap, plus there are more gaps below :-0

I think it will POP higher as they are not ready to bring it down yet. First they have to shut the people up so no one will tell the masses what happened. This will mean YouTube, Twitter and any other form of social media will have to be taken offline. That way we just have the 6oclock news to find out who's fault it is.
@digestingreality

God! I remember the days when that was all we had...then came the internet and the red pill!!

Yes the good old internet and pills! :)

Both gaps (up and down) have been covered. I see sideways to down until an external event provokes movement. In general, the market is over valued an I expect a downturn (longer term) On a daily basis I think tomorrow might tell. But then you use straddles on such days. If I must bet, I bet down.

What's so concerning about the pattern?? Can anyone explain? Thx

Stocks will drop as the dollar does.

hope it will drop...but with USD continues to drop...people need to park there money somewhere...

I am sort of thinking the S&P will just chop around in this channel for a bit, I do agree that oil may take a dip though, and that could push the market down. I think there way to many people out there buying the dip to let the market correct much though.

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My bet is lower. Why hang on for another couple of percent when the downside is 75%. The Financials look weak to me. The sector that led us up will lead us back down. Something is in the air and I don't have the balls to go long this market.

should not close above resistance horizontal line,if it does than pop otherwise drop

The federal reserve has a trading desk. I think they can cause flash crash after flash crash to buy as many equities as they need to back their toxic garbage. Which means fewer and fewer shares will be available and drive the prices to the moon. Its what I would do if I had an unlimited credit card. Buy it all up and let the scum fight over the crumbs.

Greg another great post and always great replays from people switched on to what is happening.

I will go w the Maestro's opinion and say a Pop and then a Drop.

I think it is gonna bounce between 2400 and 2300 till the next FED meeting...

Hey great to find you on steemit. I have followed you through your appearances on usawatchdog. Look forward to following you here on steemit. Keep up the good work.

Greg, I am extremely ignorant as to how the market functions. I know nothing about trading. Is it too late for me to delve into TradersChoice.net and soak up your information to get into the market and begin making some money, or should I just stick to buying bullion? I've been following you on Youtube for quite some time and love and appreciate your time and info! Thanks.

Greg, here is what I think: "Greg, This Is Potentially Forming A Falling Three Method !" https://steemit.com/money/@kamada3/greg-this-is-potentially-forming-a-falling-three-method