Special sauce tells me that stocks are going to bounce and the drop will be in August-September.
As attested by the VIX, volatility has died down and will squeeze for a historic explosion and stocks will careen in a titanic fashion.
For now the index will extend its upward move to the 1.618 at 5k and create a bearish divergence on the CCI like it did 2018. Previously, in 2020, I estimated the top at 6k (see idea below).
I speculate that the index will wick into the 0.786 At 3.2k, at which point people will think the world has ended and sell everything and join a technological doomsday cult. The index will quickly recover to 3.8k, the bottom of the Bollinger band like it did in March 2020.
But no luck crypto fans, the stock move upward will not help, crypto is currently poorly correlated to stocks and will continue to dump like in 2019 creating a negative correlation. Unfortunately Michael Saylor will go bankrupt, but the crypto community and the Vatican will sanctify him as the patron saint of Bitcoin. Crypto will stay at the bottom until stocks die, at that point people will declare Sam Bankman-Fried the messiah and seek refuge back into crypto and their crypto investment will zoom to unseen before wealth. A happy ending after all.
As attested by the VIX, volatility has died down and will squeeze for a historic explosion and stocks will careen in a titanic fashion.
For now the index will extend its upward move to the 1.618 at 5k and create a bearish divergence on the CCI like it did 2018. Previously, in 2020, I estimated the top at 6k (see idea below).
I speculate that the index will wick into the 0.786 At 3.2k, at which point people will think the world has ended and sell everything and join a technological doomsday cult. The index will quickly recover to 3.8k, the bottom of the Bollinger band like it did in March 2020.
But no luck crypto fans, the stock move upward will not help, crypto is currently poorly correlated to stocks and will continue to dump like in 2019 creating a negative correlation. Unfortunately Michael Saylor will go bankrupt, but the crypto community and the Vatican will sanctify him as the patron saint of Bitcoin. Crypto will stay at the bottom until stocks die, at that point people will declare Sam Bankman-Fried the messiah and seek refuge back into crypto and their crypto investment will zoom to unseen before wealth. A happy ending after all.
