So you think the blood bath is over!?

25 mars 2020

Wow, what a ride. We final see a bounce; however, if you think this is over or thinking we are going to see a "V-shaped" bottom think about this. During the 2008-2009 financial crisis we saw a drop around 54% which took rough 515 days from top to bottom. In this most recent drop we saw a 38% drop in 28 days. Does that help clear things up? As the US government and Fed decide kicking on the printers and start printing off money indefinitely that bring liquidity to the markets and a glimmer of confidence, thus the bounce you are currently seeing; however, false liquidity (aka. quantitative easing) can only hold of so long. Because this influx of liquidity is not "true" meaning coming from investors because they see company's productivity is expanding, this bounce cannot and will not last nor is this a reversal.

Looking for a bounce up to previous support, now resistance, around 22500 (0.382 FIB). Likely to push further to 24000 (0.5 FIB) and even may see it get all the way up to hit the bottom side of the previous MAJOR TREND LINE and hit previous KEY SUPPORT now resistance and 0.618 FIB around 25200; however this is unlikely but would allow for me to unload the few positions I am stuck in with my retirement portfolio.

Now is not a time for doom and gloom. There are several companies out there now that if you play right can be a very strong play in the long term. Looking at companies now that are barely hanging on but am very confident will be around in the future (like Boeing, GE, etc.)