You know what they say, when there is extreme levels of fear or greed, the retail investors or traders are wrong! Just got an invite for one of those hacks promoting their service to join his seminar. Other newsletters are doing the same thing! Useless drivel! However, a perfect contrarian indicator! Remember what Warren Buffett said? Be fearful when others are greedy and greedy when others are fearful! There is a lot of fear instigated by these hacks promoting their services. Eventually, they will be right! However, have they mentioned the multiple times they predicted a crash and was wrong? Learn to trade both sides of the market long or short, it does not matter. Monies to be made on both sides!
You are right mister. We don't care when market is going to crash. we just care about where is continuation up signal, continuation down signal, reversal to go up signal, reversal to go down signal. And we'd avoid markets that are untrendy, messy. But seriously, when market crashes, it would be rather difficult to day trade because movement would be very violent, spiky. So solution is to double our stop loss. And obviously we'd also double our target profit. Anyway, get ready to trade such market. Because when market crashes, movement would be extremely rapid and jerky and spiky, and candlesticks would be extra long. And your reaction must be super fast. Best is trade in trading house with high speed, high quality internet connection. Those who trade at home might not earn money due to terrible internet lag, bad fills, disconnect problem and those nonsense. So do no think it is easy to profit from such crashes. alternatively do swing trading with very huge stop loss. The last recession was 10 years ago. So it's about time .... Make sure the monitor is tall enough so what the chart Y axis is extra long, and we can display the extra long ladders. sigh .... perhaps it is time for me to trade in trading house, and not at home and get ready for the mother of all CRASHES. A difference of 0.1 sec in having your order filled can result in earning thousands of dollars in few seconds , or nothing, or worse get stopped out.
One thing I would like to add for those who trade stocks. Learn to trade options and get approval to buy calls and puts. Why? A stock option (put option) can protect your profits in a stock you want to hold onto but, afraid of a huge market correction. Say you have $5,000 in profits at XYZ stock now trading at $100. To insure that, you can buy a put option, $100 strike at say 20 days out for $300. Sure you give up that $300 as insurance but, you are able to get out at $100 for the next 20 days! You can sleep like a baby. If the stock runs up to $150, you still have your stock. Your put option lost most of its value. You can buy it back and take the residual value say, $50. Buy another put option to insure your stock position again. This time at $150 strike.
The market so far is quite resilient. The S&P fell over 1% during the day but was able to reverse half of the fall in just 2 hours. The economy is still fundamentally strong. USA is still making doughs.
i would say the flaming libs are begging for a crash bigly, lol. been a huge out burst of doom and gloom on this forum lately all by the majority who lost to the deplorables. they just can't handle the truth, lol. i love all the buy signals i see here.
It seems these perma bears just came out of the woodwork offering seminars, touting their newsletters, etc. Business must be bad for them! Imagine their customers continue to lose lots of monies following their useless advice!
This a monthly chart using a 5-period Length and 1-period lookback The market has turned over, so it appears. Data1 is $52WHN which is NYSE New 52-week highs Data2 is $52WLN which is NYSE New 52-week lows Code: inputs: AdvIssues( Close of data1), DecIssues( Close of data2),Lookback(1),Length(5) ; value1= AdvanceDeclineDiff( AdvIssues, DecIssues ); value2=summation(value1,lookback); Value3=xaverage(value2,Length); plot1(value2,"Diff"); Plot2(value3,"Sum")
I think price levels have more to do with it. When Buffett said be greedy, he meant when prices were down (bear markets)...not all time highs with some worry out there...that would just be called a bull market rising with a wall of worry. So, what is it right now? Greed at all time highs or fear at all time highs because of the perma bears out there? Perma bears exist in every bull market and even up to the point the market actually tops. For there to be true fear, don't you think investors would have to back it up with action...like actually selling shares? I don't understand how fear could exist if people don't actually sell. Maybe Buffett would also say this, "Don't think others are fearful when they only have a little anxiety"? Just my 2 cents.