{"id":165451,"date":"2020-02-24T20:11:45","date_gmt":"2020-02-25T01:11:45","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=165451"},"modified":"2020-02-24T20:11:45","modified_gmt":"2020-02-25T01:11:45","slug":"has-the-equities-waterfall-event-started-or-a-buying-opportunity","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/02\/has-the-equities-waterfall-event-started-or-a-buying-opportunity\/","title":{"rendered":"Has the Equities Waterfall Event Started Or A Buying Opportunity?"},"content":{"rendered":"
February 24, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a><\/strong> – Over the past 5+ days, a very clear change in market direction has taken place in the US and global markets.\u00a0 Prior to this, the US markets were reacting to Q4 earnings data and minimizing the potential global pandemic of the Coronavirus.\u00a0 The continued \u201crally to the peak\u201d process was taking place and was very impressive from a purely euphoric trader standpoint.\u00a0 Our researchers found it amazing that the markets continued to rally many weeks after the news of economic contraction and quarantines setup in China\/Asia.<\/p>\n

Make sure to\u00a0opt-in to our free market trend signals newsletter<\/strong> before you continue reading this or you may miss our next special report!<\/p>\n

We believe a number of critical factors may have pushed global investors away from their comfortable, happy, bullish attitude over the past 5+ days \u2013 most importantly the reality that the virus pandemic was very real and would continue to result in a more severe global economic contraction process and the outcome of the Caucus voting where Bernie Sanders appears to be leading almost every early voting event.\u00a0 There are now two major concerns hanging over the global markets and the future of the US 2020 Presidential elections.\u00a0 These two major issues may be enough to change investor sentiment and present a very real volatility event.<\/p>\n

Uncertainty breeds fear and can cause traders to move away from risk.\u00a0 We discussed these topics in research posts many months ago.<\/p>\n

January 29, 2020: <\/strong>ARE WE SETTING UP FOR A WATERFALL SELLOFF?<\/strong><\/a><\/p>\n

November 11, 2019: <\/strong>WELCOME TO THE ZOMBIE-LAND OF INVESTING \u2013 PART II<\/strong><\/a><\/p>

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September 24, 2019: <\/strong>I<\/a>S SILVER ABOUT TO BECOME THE SUPER-HERO OF PRECIOUS METALS?<\/a><\/strong><\/p>\n

September 7, 2019: <\/strong>US STOCK MARKET HASN\u2019T CLEARED THE STORM YET<\/strong><\/a><\/p>\n

Our researchers believe the underlying concerns that are becoming more evident to global traders are the very real facts that the global economy may continue to contract because of the spreading Corona Virus and risks of a global pandemic event and the fact that the US 2020 Presidential election process appears to be setting up to become a real battle between Donald Trump and Bernie Sanders.\u00a0 Our researchers believe the combination of these two unknowns is creating an environment where global traders are fearful of the future growth opportunities within the US and global markets.<\/p>\n

Bernie Sanders has been dominating the Caucus events in the US as a Socialist\/Progressive candidate.\u00a0 For many Americans, this is a frightening concept.\u00a0 Even early into the Caucus voting cycle, it appears Mr. Sanders has taken a very clear leadership role headed into the 2020 Presidential election event.\u00a0 Business and global investors are not going to like the concept of a Socialist\/Progressive US Presidential candidate.\u00a0 This is going to cause investors and business owners to avoid engaging in projects and opportunities until after the November 2020 elections.<\/p>\n

Add into this fear contagion the fact that the Coronavirus event may continue to add to the global fear component of the US and global economy.\u00a0 How much more risk is involved because of the spread of this virus over the next 12+ months and how will this concern complicate the concerns related to the US Presidential electing event?<\/p>\n

Daily Dow Jones Industrial Chart<\/h3>\n

This Daily Dow Jones Industrial chart highlights the huge Gap lower that took place early on Monday, February 24, 2020.\u00a0 This huge move resulted from an extended fear of a growing potential for a global pandemic event and a renewed fear that global economic activity may be greatly reduced over the next 12+ months.\u00a0 We believe the extended fear of a potential Socialist\/Progressive Democrat candidate may be adding to this massive decline in the global markets.<\/p>\n

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Transportation Index Daily Chart<\/h3>\n

The Transportation Index is an excellent measure of future economic activity expectations and investors belief that the global economy will recover from this potential contagion event.\u00a0 On Monday, February 24, 2020, the Transportation Index collapsed below 10,600 on a Gap Down move as the markets collapsed.\u00a0 This is a real sign that global investors suddenly believe the global markets will contract over the next 3 to 6+ months and are moving away from risky instruments in the US and global markets.<\/p>\n

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Weekly Transportation Index<\/h3>\n

This Weekly Transportation index chart illustrates just how far the TRAN could move while still saying within the range of price activity from 2018 to 2019.\u00a0 The TRAN could fall all the way to levels near 8,800 before reaching the lows of December 2018.\u00a0 Thus, from current levels near 10,500, we could see a continued price decline in the global markets of at least 15% to 20% before we near the 2018 lows.<\/p>\n

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As our research team has been predicting, it appears a Waterfall event is beginning to take place.\u00a0 This Gapping downside move may become the catalyst top in the global markets that presents a broader market rotation\/decline.\u00a0 As we\u2019ve been warning, be prepared for broad sector market rotation and for precious metals to skyrocket as greater fear sets up in the global markets.\u00a0 We hope you were paying attention to our research over the past 5+ months.\u00a0 We\u2019ve been all over this setup and have issued multiple warnings for all our friends and followers.<\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

I urge you visit my\u00a0ETF Wealth Building Newsletter<\/strong>\u00a0and if you like what I offer, join me with the 1-year subscription to lock in the lowest rate possible and ride my coattails as I navigate these financial market and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a Free 1oz Silver Bar!<\/p>\n

Chris Vermeulen<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders – Over the past 5+ days, a very clear change in market direction has taken place in the US and global markets.\u00a0 Prior to this, the US markets were reacting to Q4 earnings data and minimizing the potential global pandemic of the Coronavirus.\u00a0 The continued \u201crally to the peak\u201d process was taking place […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-165451","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=165451"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165451\/revisions"}],"predecessor-version":[{"id":165452,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/165451\/revisions\/165452"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=165451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=165451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=165451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}