Stoic Trader Profile picture
Jan 27 โ€ข 11 tweets โ€ข 10 min read

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

#thread ๐Ÿงต 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 โ†’ Pause โ†’ 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 ๐Ÿ‘‘

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๐Ÿ’ก 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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๐Ÿ’ก 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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๐Ÿ’ก International #Bonds Divergence

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

Yield ๐Ÿ“ˆ โ†’ Currency ๐Ÿ“ˆ โ†’ Equities ๐Ÿ“‰

7๐Ÿงต Image
๐Ÿ’ก #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.

8๐Ÿงต Image
#SP500 $ES_F $ES Technical Analysis

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

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This new bullish sentiment across #stocks and #crypto is getting out of control, intelligent ๐Ÿง investors call it "Irrational Exuberance"

F&ck around...

Enjoyed this #thread?

Like & Retweet the first tweet to spread the message ๐Ÿ™

Follow @StoicTA for more #TRADINGTIPS and #SwingTrading

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