What a week. Global markets continue to sell off in a major panic. The American market was largely overvalued already, so even a reversion to the mean of appropriate valuation leaves a lot of room for further downside. Hard to see much bullishness in the stock market. The S&P hit a record high just 10 days ago - now it has dropped 10% in 10 days, then fastest that price has officially entered a correction since World War 2. A correction is defined as a 10% drop and implies further downside. Bitcoin has dropped as well, not reacting as a safe haven asset (like gold). That said, there's a chance that Bitcoin is finding a bottom of this correction, although more downside would be far from surprising. Charts on equities are relatively useless in a black swan event like the coronavirus. That is just the way it is - so take EVERY chart below with a grain of salt. No EMA or line is likely to stop price from dropping when the world is in a risk-off environment.I remain short APPLE and SPY as hedges, and have still been short UBER from $41 (even before the virus) which is turning into an epic gainer. As you know, I stopped out of Disney and Roku trades - nothing you can do against a global crash.RUNE is not available on TradingView, so I was unable to chart this.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!
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The Wolf Den #25 - Markets, Bitcoin and Chart…
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What a week. Global markets continue to sell off in a major panic. The American market was largely overvalued already, so even a reversion to the mean of appropriate valuation leaves a lot of room for further downside. Hard to see much bullishness in the stock market. The S&P hit a record high just 10 days ago - now it has dropped 10% in 10 days, then fastest that price has officially entered a correction since World War 2. A correction is defined as a 10% drop and implies further downside. Bitcoin has dropped as well, not reacting as a safe haven asset (like gold). That said, there's a chance that Bitcoin is finding a bottom of this correction, although more downside would be far from surprising. Charts on equities are relatively useless in a black swan event like the coronavirus. That is just the way it is - so take EVERY chart below with a grain of salt. No EMA or line is likely to stop price from dropping when the world is in a risk-off environment.I remain short APPLE and SPY as hedges, and have still been short UBER from $41 (even before the virus) which is turning into an epic gainer. As you know, I stopped out of Disney and Roku trades - nothing you can do against a global crash.RUNE is not available on TradingView, so I was unable to chart this.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart.If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!