Crash of the century? 4 Indicators | Market sentiment analysis | Fed Bubble - YouTube

hi friends i saw this reply to my tweet and  i thought it is a good idea considering the  

market situations now frankly there are some  bad indicators for the stock market happening  

right now mainly 4 and i'll cover them  in this video appreciate an early thumbs up  

last week i did a video talking about the  usd getting stronger i'll link it up here  

a strong dollar in economics is bad for the stock  market a strong dollar means that export gets more  

expensive thus less export will happen for the  country this is the daily candle for the us dollar  

if you draw a straight line across you'll notice  that the us dollar has broke two different kind of  

resistance so i'm just going to draw two basically  this is a downtrend and you see the u.s dollar has  

broke out of a resistance over here you see it  went out and regarding this line over here you  

see there was a bounce here and a bouncer and  finally it broke out us dollar has broke out  

of two different resistance points and i believe  it's going to get stronger from now if you take a  

look at the longer term approach by clicking  all you're looking at data scenes like 1986  

you notice this thing which i like to teach you  guys all the time which is a wedging you'll notice  

there's a very big wedge over here and every time  there's a wedge sideways and it bursts out of it  

overall it looks like a uptrend to me again  i personally think that it's going to be the  

short squeeze of the century for the us dollar  and probably it may happen in the next five  

to ten years unemployment rate has never been  higher in history i do not know about you but  

this can only keep up for so long something's got  to give the default rates are not skyrocketing  

now due to the government interventions this  applies to outside of the usa too it's like my  

uk company have access to so much credit now it's  so easy and it's crazy in singapore i used to pay  

like three thousand eight hundred dollars a  month for mortgage now it's like a thousand  

plus many businesses can choose not to pay rent  and have access to certain kind of relief package  

and at this point it's really hard to SUE a  business for no payment if the government removes  

this protection it's going to cause a domino  effect so the renters can't pay the landlord  

gets into trouble banks can't receive payment  force bank sales is going to be a [ __ ] show  

the good news is the government knows this and  i'm sure they're going to do something about it  

this is the s p 500 and if you were to take a very  long term view this is all the way back like five  

six years an epic pattern is forming  right here is called a megaphone pattern  

does it look like a megaphone to you it's  either going to be the most bullish megaphone  

pattern ever or it's going to be a epic crash  of the century i'll just draw some illustration  

a bullish megaphone pattern looks like this it  breaks the megaphone line here and it continues  

going up or or it's going to come crashing down  like this and we all can kiss our money goodbye  

if the second scenario happens don't worry i have  a solution for you i'll cover it towards the end  

of the video but i think the scenario that's  going to play out would be the bullish megaphone  

in the fourth point let's talk election this is  the thing most of you want me to talk about first  

i would like to say i don't have a preference  on who wins election should have three voting  

options trump biden or neither of the above  this is how i feel regarding your elections from  

halfway across the globe america is an amazing  country with so many amazing people around  

and the best two you can come up with is trump  or biden you have 331 million people to choose  

from i'm very very sure there's one person who is  smarter more inspiring great leadership selfless  

cares for the world and above all in a very pretty  package single but not available Ooooooof... a trump win means  

more deregulations and deregulations is always  better for business thus the stock market is going  

up abiding win means more regulations which is bad  for business however if biden wins i'm pretty sure  

that america will sort itself out after a while  and the stock market will continue after a small  

correction innovative companies need deregulations  and it's a fact that regulation slows innovation  

while the four points above is something to take  note of i'm not bearish about the stock market  

and here is why. Ticker symbol TLT this is a chart  for bonds generally bonds coming down is good this  

means money moving away from bonds to the stock  market if you take a very long term view of bonds  

and this is i believe this is not my first time  showing you this chart this is all the way back to  

year 2005 2003 generally the bonds move according  to this channel if you are looking at bonds now,  

it is at the upper channel and there is a higher  probability that the bonds will come down here  

than going up here if the bonds come down here  this is good for the stock market because lots  

of money is being pushed out of the bond market  to invest into the stock market. Evaluations now  

are reasonable i know many value investors are  going to disagree but if you look at the sp 500  

p e ratio for the past 90 years you notice that it  is not at its all-time high the dot-com bubble was  

worse the 08/09 crisis was worse so the truth is the  stock market is not overpriced the interest rates  

are very low and you look at the current like  average p e ratio is about 22 23 the market is not  

expensive anyway since i'm at the charts i'll just  take one to two minutes because you guys love this  

tesla q3 earnings is upcoming in like two to three  days and let's take a look at tesla charts since  

my last video tesla has broke out of two wedges  the long term wedge here which is the orange wedge  

and the short term wedge which is the light blue  wedge also our friend vincent from tasmanian.com  

he sent me a chart on the reverse head and  shoulders so this is a very very bullish pattern  

the chances of tesla spiking up to the next level  should be really very high wrapping up this video  

we know there will be a crash eventually but all  crashes always lead to a higher market the low  

will always be like a higher low because it goes  up like that the best way to position is to invest  

in innovation this strategy has never failed  i did a video on this i'll link it up here  

so what if the stock market corrects 50%? you  know exactly what to do i've done countless  

videos on this my portfolio holdings haven't  changed and i don't intend to change it i've  

done videos previously back testing markets and  research showing that the best thing you can do is  

investing is to like buy hold dollar cost  average into innovative companies and you  

outperform the best fund managers everything  else are noises and that doesn't matter i hope  

this video helps you a lot in your investing uh  appreciate your thumbs up invested and don't be uh