In the aftermath of Monday’s solar eclipse and the recent flashing of yet another Hindenburg Omen, perhaps traders should be braced for Armageddon? Alas, the stock market has a way of thwarting preparedness by boring to death those who would attempt to get ready. And if millions of traders are indeed ready for the worst at this moment, you can bet that Mr. Market will be on his best behavior. I’d just about given up on a 10.24 target for VXX, which, if reached, would imply that already brain-dead volatility is about to sink even lower. Perhaps it’s time to dust off this target? (Note: DaBoyz have reverse-split VXX at 4:1. The new target is 40.96.)
Will Hindenburg, Eclipse Turn Out to Be Duds?
- August 23, 2017, 5:49 am
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August 23, 2017, 5:40 am
One of the most important processes has been the leaving of liquidity this is seen though a advance/decline line non confirmation and a declining process in certain indicators as the McClellan Osc/Sum index.
Not until we see liquidity leaving the market will not have a deep set back to take place. It is only recent that the MSI and RAMSI (McClellan Summation Index) is working towards the zero level suggesting liquidity is leaving the market base.
Putz window is open for 6-8 weeks after the events of 08/21 and Hindy’s are always cluster suggesting change.
The main change has taken place, the DXY is the base for the exiting of investment in the USA, this is about to put this sector as a leader towards the debt and then the equity markets.
Expect a major ‘currency dislocation’ soon to take place and not seen in many decades.
Traders and investors are asleep, as is always the case.Have a great day Rick.
When a major trend change takes place, a market will ‘open the barn door’ in volatility.
This is done by opening and expanding the daily price range and moving in the opposite direction of that new major trend change.
The movement of price in this ‘opening the door’ is a character change, which is seen as a more aggressive pricing move towards the old trend that is ending.
It may seem as if this old change is not done, and even be observe as a whole new other leg of that old trend.
These shifts are rather quick in time, but quite emotional.
Again have a great day…LOL