Comment Cleaner

Here’s a quick comment cleaner as the previous post had accumulated nearly 700 comments. Boy you guys are chatty! Well, it’s official, Mole’s Market Curse is the real McCoy plus I’ve got another week of vacation time ahead as I am scheduled to return to Valencia after Las Fallas. Now guess what – with only four days to go until the main festivities the communist monkey of a mayor has finally decided to call off all festivities. Having lived in Spain I of course suspected weeks ago that they would drag their feet until the last moment and then finally be rushed to make a decision.

Never mind that most ‘falleros’ have either already arrived or are scheduled to arrive in a day or two. None of them are going to get their travel or hotel cost reimbursed which is going to wreak havoc on the local tourist industry. Had the people in charge paid any attention a month or even two weeks ago – which of course they did not – they would have realized that they were looking at a major public health crisis here.

But true to form our idiot of a mayor proudly announced only a week ago that people should not act like bloody hypochondriacs and that the ‘necessary preparations for Las Fallas were zero’. I would usually say that he really ate his words there and that his chances of re-election were in line with his now famous quote. However knowing how Spaniards are wired I suspect they’ll most likely go and vote for that fool again in the next election.

Anyway, we’re having a great time here in Jávea and I shot a ton of awesome drone footage I’ll be posting here when I’m back in Valencia. I’ve forced myself to not follow the markets, as difficult as it may be given what’s going on.

Since Mrs. Evil isn’t looking here’s a quick chart that paints a pretty good picture of what we’re facing at this point. The current support zone near ES 2850 is only soft support courtesy of a rising diagonal that has been holding up since early 2018 (exception being of course the December 2018 wipe out).

The current correction however is a lot more violent in comparison and what makes it worse is that every single attempt to overcome overhead resistance has failed thus far. Meaning if you look at a daily chart you will see that almost no major spike high has been breached.

Given that the coronavirus crisis is only getting warmed up there is no telling how low she’ll go. It’s quit possible we’ll be talking about 2k or below levels in the S&P 500 in just a matter of weeks. As terrifying as this may sound to the younger generation of traders who never experienced a major bear market, let me assure you that it’ll be a good thing over the long term.

More specifically we’ll be able to take advantage of plenty of overhead resistance zones as well as support zones below. This will make trading a hell of a lot easier – plus we’ll be able to take advantage of volatility plays which both Tony and I are working on posting here over the course of the coming weeks and months.

So I recommend everyone take a step back from the doom & gloom clickbait and instead focus on the awesome opportunities this market correction is and will be opening up for us. If nothing else, remember that the most profitable opportunities present themselves when proverbial blood is flowing in the streets.

Alright, Mrs. Evil just showed up so I’ll be close up and pretend that I’m not working. See you in a few days 😉

P.S. I’ll try to convince Tony to make another post over the weekend or next week.