M2 - Velocity and Explanation of DIVERGENT TRENDS Explained V.1
The explanation will be broken into several parts below:
You see what I see. M1/M2 Velocity collapsing while Fiscal Policies become far more
extreme in nature.
Profile and Structure are comprised of a great many observable metrics.
Volumes are wafer thin. Gamma squeezes are, on balance, failing.
Calls are what has driven volume, Stops at levels are being used as well.
The same Large Caps drive Price from a narrow and concentrated group of 7-9 equities.
AAPL is an excellent example - the Cult of iMob is not driving price with outright purchase, but Calls.
We see this weekly, APPL's range is 141 to 150. It is approaching the Resistance @ 150.
Concentration Metrics show clear RISKs to any type of event - Profiles are out of balance.
QQQ's continue to hold 363, for now.
Support and Resistance have morphed into a weakening structure within the overall Market Profile.
____________________________________________________________________________________
ATHs are meaningless to a functional trader. Structure and Profile has far more to it than Higher Highs.
The Divergences have never, in the history of the Equities Markets, been this extreme. Never.
We can see Longer term indicators beyond the DOW Transports which clearly align within the
numerous indicators demonstrating the widest negative divergences ever.
These have been Divergence warnings during 2007, 2011, 2015, 2020 and now - 2021.
The Magnitude of each has been interesting:
The Scope and Scale of each Daily Divergence is highly correlated to the percentage retracement
with only 1 exception.
2007 - 56% decline - Scope / 86 weeks of DIV - Scale
2011 - 16% decline - Scope / 16 weeks of DIV - Scale
2015 - 12% decline - Scope / 60 weeks of DIV - Scale
2020 - 32% decline - Scope / 47 weeks of DIV - Scale
2021/2022 - TBD and yet it has exceeded the 90 year cycle Highs
In March of 2022 we will have completed the 90 year Cycle.
Will it be the onset of a wider and more pronounced and obvious Global Economic Contraction?
Or is it front run?
I believe it will be front run in dramatic and very violent fashion.
It will depend on Confidence, which is waning dramatically, we are seeing this in M1 - a dramatic
decline in Consumer purchases.
Factories around the Globe are being shuttered.
It follows the pattern Samsung exhibited in 2019... almost perfectly. Review the 2019 10Ks and 10Qs.
You see what I see. M1/M2 Velocity collapsing while Fiscal Policies become far more
extreme in nature.
Profile and Structure are comprised of a great many observable metrics.
Volumes are wafer thin. Gamma squeezes are, on balance, failing.
Calls are what has driven volume, Stops at levels are being used as well.
The same Large Caps drive Price from a narrow and concentrated group of 7-9 equities.
AAPL is an excellent example - the Cult of iMob is not driving price with outright purchase, but Calls.
We see this weekly, APPL's range is 141 to 150. It is approaching the Resistance @ 150.
Concentration Metrics show clear RISKs to any type of event - Profiles are out of balance.
QQQ's continue to hold 363, for now.
Support and Resistance have morphed into a weakening structure within the overall Market Profile.
____________________________________________________________________________________
ATHs are meaningless to a functional trader. Structure and Profile has far more to it than Higher Highs.
The Divergences have never, in the history of the Equities Markets, been this extreme. Never.
We can see Longer term indicators beyond the DOW Transports which clearly align within the
numerous indicators demonstrating the widest negative divergences ever.
These have been Divergence warnings during 2007, 2011, 2015, 2020 and now - 2021.
The Magnitude of each has been interesting:
The Scope and Scale of each Daily Divergence is highly correlated to the percentage retracement
with only 1 exception.
2007 - 56% decline - Scope / 86 weeks of DIV - Scale
2011 - 16% decline - Scope / 16 weeks of DIV - Scale
2015 - 12% decline - Scope / 60 weeks of DIV - Scale
2020 - 32% decline - Scope / 47 weeks of DIV - Scale
2021/2022 - TBD and yet it has exceeded the 90 year cycle Highs
In March of 2022 we will have completed the 90 year Cycle.
Will it be the onset of a wider and more pronounced and obvious Global Economic Contraction?
Or is it front run?
I believe it will be front run in dramatic and very violent fashion.
It will depend on Confidence, which is waning dramatically, we are seeing this in M1 - a dramatic
decline in Consumer purchases.
Factories around the Globe are being shuttered.
It follows the pattern Samsung exhibited in 2019... almost perfectly. Review the 2019 10Ks and 10Qs.