E You Need Not Ask Why The Markets Did What They Did This Past Week

Remember that Moving Average Countdown Clock I warned about in part three of the Mystery Chart Of The Day on January 29th? No? Lets review a little from that article, with key points in blue print.

In the chart above we walked thru what I call the countdown clock when it came to moving averages in extended market climates and what it leads to once there are no more moving averages to trade off of. 1-27-18 As I write this our indexes are currently above the 5 day moving average. Its only a matter of time before it burns itself out to the upside much like our mystery chart did as shown above.

So, now that I've walked you thru the mechanics of what climax runs can lead to, at the least consider this the first step towards being prepared when the time comes. 

Remember, like I've said climax runs are the beginning of the end of a bull market cycle. We've seen that in the year 1929, 2000, and 2007. Know what else those periods of time leading up to those tops had in common? 

All the news out there was good, great and over the top (sound familiar?). All the Wall St. analysts were constantly raising estimates and projections for the year to come (sound familiar?) all AFTER the market has already ran for months on end.

Does all this sound familiar? It should, here is another example, can you say bitcoin in December 2017 when it made its moving average burnout climax run and was sitting at like 20,000 or whatever absurd number it was with people coming out of the woodwork saying sky's the limit and throwing out crazy numbers like 40,000 AFTER its gone from like 1000 to 20,000? And lets not forget our FB feeds and every financial news web portal littered with advertising about it being the next big thing AFTER it already WAS the big thing.

2-4-18 See bitcoin this week? 

Look, I don't know if indeed we are currently going to follow the same script here in our markets like QCOM did and Bitcoin currently is. All I am pointing out are the similarities and they are strikingly similar.  I'd rather you all be aware of what this could lead to over time than to be a deer in the headlights. 

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Disclaimer: THESE ARE NOT BUY RECOMMENDATIONS! Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources ...

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