Price Reductions, Accelerating
From a technical perspective, it’s a disaster.
The last post showed price action had nowhere to go but down.
In that post, a trading channel was identified on the weekly chart.
Now, this week, with the action from the past three sessions and possibly a fourth (today), the channel is being confirmed.
Then, we have this:
Price Reductions Accelerating … At Record Pace
As if on cue, to support the assertion from Tuesday’s gold update; specifically:
“We should expect market events to reach never before seen extremes.”
We’re getting that same ‘never before extreme’, in real estate; presenting itself as accelerating price reductions.
At time stamp 5:20 at this link, we can see a graphical presentation of that collapse.
To borrow a quote from Dan at i-Allegedly: ‘Anyone who thinks price reductions are going to taper off, are kidding themselves’.
We’re just getting started.
Real Estate IYR, Daily Close
It’s about fifteen minutes before the open and IYR, is trading down nearly – 2%, in the pre-market.
That action confirms the declining channel shown.
As a result of this week’s apparent pivot (identified in the last post), a new channel appears to be emerging.
This one’s more aggressive.
If the new channel ‘sticks’, real estate trouble’s happening faster than most would expect.
Pulling out a little farther on the chart shows the downside potential.
Declining at nearly – 95%, annualized hardly seems possible.
Nearly everyone has been lulled to sleep with the orderly decline of the markets thus far.
In non-related but nevertheless connected event, the situation world-wide is moving faster, not slower.
It does not matter these events are completely fabricated (as was The Speck).
The effects of the fabrication are real.
Wyckoff Analysis Leads The Way
This week’s reversal off of last week’s trend lines confirms their existence.
Price action itself is leading the way; this is the crux of Wyckoff analysis.
The market itself defines what’s important.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279