Beware Bulls: Market May Destroy Your Wealth. Market indices are unidirectional it climbs to the highs with respect to time. The acceleration or momentum decides the rate of return with respect to time. But it will have tuff times which destroys almost everything that is the merciless bear.
Ready for Dow 30 Crash:
The current rally is almost eight and half years old. So the bulls are very tired the market is building the negative position on each negative news but retailers doing the opposite. I think the negative news surround are warning signs as earlier negatives are completely bought out on the same day but now it’s not happening.
The big bulls are on sidelines as the valuations are historically high and it cannot justified for longer time frame. As the rally started in March 2009 now it is matured as almost eight and half years of the restless rally.
In Social media, everyone was super bulls they predict Dow should hit 30000 before December. But the reality is much different In this 9-year rally Dow 30 index traded near to the channel top almost 80% of the time. Now also the index resisted near the channel top but this time it is painting the different picture.
The current rallies 23.6% Fibonacci retracement support is placed at 18400 and a major breakout support also placed there. And 38% retracement is placed at 16100 and 50% retracement is placed at 14250. If 18400 support fails to hold we may down to the level of 14250 which is more likely.
Beware Bulls: Market May Destroy Your Wealth:
The most respected bulls can justify today’s stock price, valuation, future earnings etc. If bear attacks they will be decided less and pray for their stock. The important character of bear is they are merciless, They punish everything the control will be suddenly taken over by them. You cannot justify you are right in any way.
I am not creating panic in the bull camp. I am just creating awareness to the uninformed bulls. As the rally is 9 years old and it is maturing So be careful bulls.