Stretched, Stretched, Stretched
Slightest Dip, Cascading Effect
The last update had what some might consider a hyperbolic statement:
” … a market break anywhere from 20% to 50% (in our view) can happen at any moment.”
Less than an hour after that post, we had this from ZeroHedge.
” …in other words, stocks may be at a record high, but they have also never been more fragile and more sensitive to even a modest drop.”
Of course, nobody’s going to come out and publicly say we could get a ‘disconnect’ that results in a 20% drop or more, overnight.
Remember the Flash Crash of 2010?
In the entire history of the market, that’s never happened before, either.
We’ve got empirical and anecdotal evidence pointing to the real objective of the ‘experiment’; now, we’re fortunate enough to have a data analyst doing what the medical establishment used to do.
That is, maintain and present the data.
Reviewing the data solidifies the fundamental case even more for biotech implosion (taking down the broad market as well).
Mr. Benavidez estimates: 100,000 – 200,000 already dead in the U.S.
Let’s not forget; nearly half of the states have approved ‘liquefaction‘ of the deceased to be used as ‘fertilizer’. These are facts.
Seems like everything’s well planned … far in advance of current events.
Since the SPBIO, index does not provide volume data, we’ve done a modification.
The SPBIO, weekly chart is below but it’s inverted. The weekly Force Index of leveraged inverse fund LABD, has been added.
On a closing basis, SPBIO (inverted) has penetrated just below support. It’s done so on significantly divergent energy.
Drilling down to the daily, it’s a similar picture; except we see the axis line (now support) more clearly.
With the conditions noted above, SPBIO’s in position to pivot. Heading lower while LABD moves higher.
Potential USO Model:
When the big reversal takes hold, conditions may be similar to oil (USO) from July 2014, to the interim bottom of February, 2016.
During that move, the market retraced no more than 23.6%, at any stage of the decline.
However, if you recall, newsletter writers, pundits and YouTubers were putting out their prognostications; get into oil’s ‘big rebound’.
By February 2016, USO’s down a whopping – 81%. The oil market never came back.
One commenter to a Jerimiah Babe video observed:
‘Most people think the worst is over when it’s not even started.’
That exemplifies the mindset required. This economic and societal decline is going to be a very long ordeal.
The normal at this point, is anything that wasn’t normal before.
Charts by StockCharts
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