The comparison is easy, the debt level is even crazier than during the last credit bubble that bursted 10years ago.. Real economies just started to get over it but it seems like traders haven't learnt anything for the previous crisis !! As I always say... trading is about cycles and no matter how ofter I hear "This is different now..." or things like that... the thing is that cycles repeat through time.. credit bubbles or speculative bubbles have always burned the markets even though the economy was looking good and strong... Will we repeat the cycle again... I tend to say yes ! But it's too early.. Sure thing is that I'll have a close look at what could happen on the same fibonnacci extension than the one that triggered the previous krash ! Just in case ;)
Hope this idea will inspire some of you ! Don't forget to hit the like/follow button if you feel like this post deserves it ;) You can check my indicators via my TradingView's Profile : @PRO_Indicators Kindly, Phil
do you mean it will be a bearish market in 2018? However, the US is going to raise the interest rate, is it contradicting?
PRO_Indicators
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@MatthewKan, Raising interest rates has always been signs of an ending economic cycle or at least signs of potential weakness to come. Cause after growth we generally see a little recession period.
I don't know when this is about to happen I just note that the underlying risks are now reaching interesting levels to start considering potential reverse positions.
PRO_Indicators
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@PRO_Indicators, Meaning that I won't go all the way down to short full leveraged the equities but I'm starting to get interest on searching potential weaknesses to profit from !
Matthew852
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@PRO_Indicators, Thanks for your reminding. 34000 might be a reversal point for HSI as I see a target price for channel breakout there too. Hope that there will be some correction at that price level.
PRO_Indicators
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@MatthewKan, That's what the study suggest, so I'll have a close look at price action if/when reaching this area !
imkc1127
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Wave (IV) should not overlap wave (I), I think? And so.. (III)-->(I), (IV)-->(II), (V)-->(III)
PRO_Indicators
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@imkc1127, Overlap is possible, the only condition is that wave 4 should not move into wave 1 (except on ending diagonals). Personnally I accept wicks to trade into wave 1 but if wave 4 manages to make closes into wave 1 territory then it's invalid indeed.
PRO_Indicators
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@imkc1127, Moreover when we're on extended wave 5 impulses, the wave 1 & 4 overlap is almost always happening ;)