SP500-SHORT-THE CRASH
SPY remains a STRONG SELL!
This idea is an update to the original idea called SPY-SHORT-BUY PUTS dated July, 2018. The first target of $240 has been successfully hit. The second target of the analysis is $210.
Analysis Method: Wave Theory & Fibonacci
The main potential downside catalysts that have been discussed in the previous analysis are the following:
1. The Fed (Inverting Yields/QE)
2. Brexit (Hard/Soft)
3. Europe (Survive?)
4. Mueller (Constitutional Crisis?)
5. Geo-politics (Supply-chain,Resources)
The stage is set for a major inflection point in human history. We are at the precipitous of the fiat monetary system being severely stressed. And, yes, it might even break. Global QE is unwinding trillions of dollars which will be the primary cause of the coming collapse. Liquidity will freeze.
One of the known negative consequences is that quantitative easing devalues the domestic currency.
What type of Monetary System does the world use?
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value.(wiki)
What happens if Europe fails and citizens lose faith in the Euro?
Also, The world is about to take a leap forward in a major way which will be brought to fruition through technology. Life-changing technology such as 5G and Blockchain are the prime examples. These technologies will be so disruptive they will upend most sectors of the economy.
The top technology stocks have generated most of the wealth in the last 10 years, but technology has become largely concentrated which limits innovation.
The FAANG stocks represent more than 50% of the S&P tech sector.’
The core nature of technology is innovation and change. It comes with no surprise that the technology landscape has vastly shifted over the past 10 years. Only 4 of the top 10 Tech companies in 2008 by market cap ( Apple , Microsoft , Cisco Systems, and Intel ) are in the current top 10 technology firms in 2018. We expect the cycle of disruption to speed up further, making the FAANG stocks unreliable from a long-term perspective. (https://www.forbes.com/sites/katinastefa...)
Hold on…
The World Is Changing!
Review:
Cycle Wave 3/Primary Wave 5 is where we currently are in the wave count. Primary Wave 4 formed an irregular correction called a horizontal triangle which had sub-wave sequences of 5–3–5. This has formed a Higher Wave Bearish Leading Diagonal . Irregular Corrections found in the Wave 4 position imply that the coming 5th wave is likely to be extended.
Source: TheHumbleWatcher
