WhiteLove
4th February 2016, 22:42
In my previous post within this topic, I wrote:
"It is said that FED comments were behind the selling, but to me it looks more like the stock markets are being faked towards overselling, in the short term. It will be interesting to see how this develops. If this scenario turns into a second shock, meaning that a new second financial collapse risk is already starting to build up, then something truly rare is about to happen...!
There is a turnaround in the base current. Money is now flowing out of stocks, especially out of Chinese companies into mostly Gold but also Oil. The base current does not change that often, FED seems to be pretty stuck on their rate hike strategy and markets are starting to show signs of negative synchronicity. All of this indicates that eventhough the first financial crisis risk was successfully mitigated, a second wave might actually already be building up and if that is the case, then that might cause a pretty substantial sell pressure coming up."
I have now studied how the markets are moving and have concluded based on my findings that all of the latest sell movements have been done to cause over selling. Yes, the indications were that a second wave could be in the process of building up, but this turned out not to be the case. I do think the base current has changed, meaning that I do think Gold will continue to climb and that we are witnessing a huge bubble building up. But I think that the bubble will burst later this year, not within a month or something like that. For now I think stocks like Baidu have reached an interesting value at around 150 USD per stock, lots of heavy investors must have got pretty good positions at this point. Due to the fact that I'm expecting Gold prices to continue to go up, I also expect the stock markets not to rally. But I think that the markets are going to start advancing again and I think that a stock like Baidu can go up to at least 170 USD per stock from here. So when the collapse triggers later this year, Gold will be part of that sell pressure. So I am going to monitor the Gold price for when the real crash happens. When Gold turns down, then I think the big collapse is here. And stocks like Baidu will provide some obvious signs prior to that. We already saw on August 24th 2015 it could do this in a single trading day: 152.91 -> 125.15 -> 100 -> 141.08. That is a very rare stock move by a company at this size. That was the first sign of what is to come.
"It is said that FED comments were behind the selling, but to me it looks more like the stock markets are being faked towards overselling, in the short term. It will be interesting to see how this develops. If this scenario turns into a second shock, meaning that a new second financial collapse risk is already starting to build up, then something truly rare is about to happen...!
There is a turnaround in the base current. Money is now flowing out of stocks, especially out of Chinese companies into mostly Gold but also Oil. The base current does not change that often, FED seems to be pretty stuck on their rate hike strategy and markets are starting to show signs of negative synchronicity. All of this indicates that eventhough the first financial crisis risk was successfully mitigated, a second wave might actually already be building up and if that is the case, then that might cause a pretty substantial sell pressure coming up."
I have now studied how the markets are moving and have concluded based on my findings that all of the latest sell movements have been done to cause over selling. Yes, the indications were that a second wave could be in the process of building up, but this turned out not to be the case. I do think the base current has changed, meaning that I do think Gold will continue to climb and that we are witnessing a huge bubble building up. But I think that the bubble will burst later this year, not within a month or something like that. For now I think stocks like Baidu have reached an interesting value at around 150 USD per stock, lots of heavy investors must have got pretty good positions at this point. Due to the fact that I'm expecting Gold prices to continue to go up, I also expect the stock markets not to rally. But I think that the markets are going to start advancing again and I think that a stock like Baidu can go up to at least 170 USD per stock from here. So when the collapse triggers later this year, Gold will be part of that sell pressure. So I am going to monitor the Gold price for when the real crash happens. When Gold turns down, then I think the big collapse is here. And stocks like Baidu will provide some obvious signs prior to that. We already saw on August 24th 2015 it could do this in a single trading day: 152.91 -> 125.15 -> 100 -> 141.08. That is a very rare stock move by a company at this size. That was the first sign of what is to come.