XJO - Bear Posts only (Factors which might cause the markets to fall), page-8037

Very slow news day today..

Therefore you go on holidays and visit other places. I went to the dark side and we are supposedly the greedy bears now. I might actually switch that around to greedy bulls but add ignorant

You also sit on your hands waiting for the bulls to push up your stonks so you can get out with good profits. Thank you metaphysical force for ignorance.

Not quite sitting on my hands as in my journeys I saw interesting charts of the awesome highs which are being achieved at present. I wondered, has there ever been a time in history when stocks have set higher highs only to reverse.. I'll let you be the judge of that... (not providing dates - you can investigate yourselves if you don't want to take my word)

NASDAQ






















S&P500














And it kept on going.......

Observations:
- Higher highs at a top don't always turn lower (especially on the first signal).
- Higher highs after a significant drop always lead to a lower lower
- The drop to the lower low varies in intensity
- This final drop usually signifies the bottom of a market
- The follow on higher highs after the final drop lead to the market continuing up (until such time as the first observation occurs again).

Having said that I didn't go all the way back to the 80s when there was still high inflation and monetary policy was tight. There was no excessive liquidity or spending around that time either which is still the case presently. If those taps turn off, then the final observation may not be valid either.

But always after a drop followed by a higher high, expect a new lower low to finally signify the end of the downturn post 1980s