Saturday 7 March 2020

Dow 2020 Crash Watch

This is now on the table. Let us review three prior Dow volatility shocks.
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But first let us remind you of the Sabbatical Cycle (previous post Shemitah Study

Re post of the 7 year cycle chart below. Take 2015 add on 7 equals 2022, which suggests if a bear market does a occur a low maybe found in 2022. In 2015 we had a 12% sell off just prior to the 2016 US elections. 


Cycle




Back to main topic ..


The most volatile years in the Dow over the last 100 years are: 1929, 1937, 1987

Currently the Vix is above 35, and if this continues to stay high then the crash risk remains.

Fundamentals: The virus effect in the USA is to get worse, and with risk assets priced to perfection a quick and violent adjustment is set to reset prices, or worse begin a deep trend to lower prices.

Of course the need for cash will explode and contagion selling will occur. Please notice how GOLD is not acting like it did in the 2008 GFC crisis. Gold may escape contagion selling, and what does that tell you.



2020




1987




1937




1929




Original Post: https://ift.tt/2IvanII

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