The #extremes are extremely difficult to digest and accept. I remember buying at 10k sensex , nifty 3000 in oct 2008 and seeing 8000 and 2250 in next 4 sessions. Vix hit 85. The crazy moves break all price levels but do not stay there forever. Was back to 3000 in 5 sessions.
This time around all sentiment indicators rsi, vix, stocks below demas, max fall etc are near to readings of 2008 but that happened after a 50% fall and then another 20. This is happening after a 20% fall from highs in quick time.
The trigger this time around is #coronavirus is not a financial one and that will take its time to resolve as no one #fed or #ecb #rbi can come and cool the nerves. What bottoming was expected in 2-4 weeks can now happen in 2-4 days. The best thing to sometimes is to nothing!!
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