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Jan 27, 2023 β€’ 11 tweets β€’ 10 min read β€’ Read on X
BULL TRAP THESIS 🧐

Read this comprehensive thread so you understand why this is the BIGGEST BULL TRAP that we have ever seen

#thread 🧡 Image
Let's start with JPOW & Interest Rates

Currently, Fed has been raising interest rates to battle inflation which puts downward pressure on the #StockMarket

So if Fed keeps raising rates, it's #bearish for #stocks & #crypto.

Raising Camign β†’ Pause β†’ Decreasing Campaign

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We are in a #BearMarket and this recent rally has sparked a lot of enthusiasm from #investors and #traders.

Bear Market Rallies are a common phenomenon during the Bear Market and usually have multiple selling climaxes and declining volume on the rallies.

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Now, I am going to dive into different charts to show you the confluence of what I am saying.

First up, $VIX πŸ‘‘

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πŸ’‘ Look for divergence when #VIX makes a lower low, #stocks should make a higher high and when it does not happen, we can anticipate a turn in the markets.

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πŸ’‘ Indicies Divergence

Monitor Three Major Indices: #DOW #NASDAQ #SPY and look for divergence, all three indices should follow each other and make higher highs and lower lows in tandem. When it does not happen, we can anticipate a turn in the markets.

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πŸ’‘ International #Bonds Divergence

Monitor International 10Y Bond Yields: #USA, #British, #German bonds and look for divergence.

Yield πŸ“ˆ β†’ Currency πŸ“ˆ β†’ Equities πŸ“‰

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πŸ’‘ #DXY Dollar Index at MAJOR support!

If the #Dollar bounces from its MID RANGE support, we could see a 6% rally which would be very #bearish for #stocks and #crypto.

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#SP500 $ES_F $ES Technical Analysis

1. Liquidity Grab βœ“
2. Displacement βœ“
3. Structure Break βœ“
4. Retracement βœ“
5. Short inside Optimal Trade Entry βœ“

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This new bullish sentiment across #stocks and #crypto is getting out of control, intelligent 🧐 investors call it "Irrational Exuberance"

F&ck around...

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Enjoyed this #thread?

Like & Retweet the first tweet to spread the message πŸ™

Follow @StoicTA for more #TRADINGTIPS and #SwingTrading

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More from @StoicTA

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Weekends are for sharpening your edge 🧡
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1. MSB Trigger
2. Double BOS Entry
3. Trail Stop to the Target Image
In this case, we traded into an unmitigated zone that was left behind after a huge drop Image
Read 5 tweets
Jun 29, 2023
Do you want to know the most likely breakout direction from consolidation?

Measure the RangeπŸ’‘

πŸ“ˆAccumulation = price spends very little time below 50%
πŸ“‰Distribution = price spends very little time above 50%
what do you see?
Read 4 tweets

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