tradethepoolpool ads

Extremely High Risk: SPY, DIA, QQQ, IWM

Our Stock Market can fall aggressively and anyone ignoring the risks can see their wealth wiped out in a hurry.  I am not saying this to strike fear into anyone, but if you are blind to the risk you definitely should open your eyes.  There is considerable downside risk based on a number of factors, that includes all of our macroeconomic work, but nothing speaks louder than visualization. 

The chart below is for the S&P 500 (SPY), but similar risks appear for the Dow (DIA), NASDAQ (QQQ), and Russell 2000 (IWM).  In all instances, we are well off of the ideal shorting range, but the risks are exceptionally high.  We short when everyone else is buying, that is the rule, and buy when the market capitulates, but the market is far from capitulating.

Furthermore, our macroeconomic work, “The Investment Rate” (read it now), tells us the declines could be much worse than what is illustrated here.  Be careful, be cautious, get a tight grasp on your risk controls, and remember that the stock prices of good companies fall when the market falls too, so there is no shelter except in proactive strategies that can make money in both directions.  Anyone with an interest in those should look deeper into the services we provide.

S&P 500 chart.  SPY

 

Triggers may have already come
Support and Resistance Plot Chart for

Blue = Current Price
Red= Resistance
Green = Support

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.

Our Market Crash Leading Indicator is Evitar Corte.
  • Evitar Corte warned of market crash risk four times since 2000.

  • It identified the Internet Debacle before it happened.

  • It identified the Credit Crisis before it happened.

  • It identified the Corona Crash too.

  • See what Evitar Corte is Saying Now.

Get Notified When our Ratings Change: Take a Trial