Double Bottom Reversal Pattern Developed!
Welcome back from the long weekend!
The dead cat bounce is currently well underway exactly how I said it would last Wednesday night. No surprise there. A strong positive day today on the back of worsening economic data only confirms that this is nothing more than a dead cat bounce. Empire state index continues to point towards a contraction in manufacturing for a 7th straight month and housing market index continued its downtrend this month after peaking off last October. Over the past few years, with little to show on the economic front, housing has been one of the most important factors for the stock market growth so far. With this factor now shaking to the core, it simply adds on to the possibility that this is nothing more than a dead cat bounce at a nice technical level which encouraged some of the remaining bullish remnants to buy.
Looking inside, we saw a significant jump upwards in the bond yields with the total equities put call ratio remaining largely in the uncertain zone. These factors tells me that today's strong up day was somewhat overdone by the investors but with traders still remaining uncertain and skeptical. On the technical front, the market did complete a very nice double bottom formation along with strong bullish divergence, which in a normal intermediate correction scenario, I would say denotes a bottom and the resuming of the previous bull trend. However, looking at it in the context of a market crash scenario tells me that this could be a significant dead cat bounce akin to an intermediate correction in a bull market scenario. Yes, even in a full blown bear market, positive weeks or even a positive month is perfectly possible and this "dead cat bounce" has every indication of becoming one of these significant pull ups before the primary trend turns bearish.
So far, over the past 2 decades, I have been sniper sharp at predicting the 2008 market crash, the 2009 market bottom (in fact, I was the first analyst online to propose that 2009 was the bottom of the bear market and few believed me then) and now this 2016 crash. In fact, people are calling me the "Options Sniper" now. And people are beginning to ask to learn my secrets of how I so accurately read and predict the market over the past 2 decades. I have been very secretive and protective of my methods so far but for the very first time, I would be open to teach this method over a one week online intensive course with 30 mins daily Skype live chat and daily lesson materials for just $10,000. Yes, $10,000 to start reading the market like a pro and making ALOT more in profit. Most successful traders won't give up their secrets even for $100,000. So, if becoming an "Options Sniper" is what you wish, email me at founder@mastersoequity.com for more details!
Market Crash Timer: RED
For now, the market turns a short term bull trend within an intermediate bear trend and primary neutral trend.
The dead cat bounce is currently well underway exactly how I said it would last Wednesday night. No surprise there. A strong positive day today on the back of worsening economic data only confirms that this is nothing more than a dead cat bounce. Empire state index continues to point towards a contraction in manufacturing for a 7th straight month and housing market index continued its downtrend this month after peaking off last October. Over the past few years, with little to show on the economic front, housing has been one of the most important factors for the stock market growth so far. With this factor now shaking to the core, it simply adds on to the possibility that this is nothing more than a dead cat bounce at a nice technical level which encouraged some of the remaining bullish remnants to buy.
Looking inside, we saw a significant jump upwards in the bond yields with the total equities put call ratio remaining largely in the uncertain zone. These factors tells me that today's strong up day was somewhat overdone by the investors but with traders still remaining uncertain and skeptical. On the technical front, the market did complete a very nice double bottom formation along with strong bullish divergence, which in a normal intermediate correction scenario, I would say denotes a bottom and the resuming of the previous bull trend. However, looking at it in the context of a market crash scenario tells me that this could be a significant dead cat bounce akin to an intermediate correction in a bull market scenario. Yes, even in a full blown bear market, positive weeks or even a positive month is perfectly possible and this "dead cat bounce" has every indication of becoming one of these significant pull ups before the primary trend turns bearish.
So far, over the past 2 decades, I have been sniper sharp at predicting the 2008 market crash, the 2009 market bottom (in fact, I was the first analyst online to propose that 2009 was the bottom of the bear market and few believed me then) and now this 2016 crash. In fact, people are calling me the "Options Sniper" now. And people are beginning to ask to learn my secrets of how I so accurately read and predict the market over the past 2 decades. I have been very secretive and protective of my methods so far but for the very first time, I would be open to teach this method over a one week online intensive course with 30 mins daily Skype live chat and daily lesson materials for just $10,000. Yes, $10,000 to start reading the market like a pro and making ALOT more in profit. Most successful traders won't give up their secrets even for $100,000. So, if becoming an "Options Sniper" is what you wish, email me at founder@mastersoequity.com for more details!
Market Crash Timer: RED
For now, the market turns a short term bull trend within an intermediate bear trend and primary neutral trend.
posted by Jason Ng at 6:25 PM
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