I feel really bad to see the stock market crashing and many people getting burnt with the massive selloff in the market.
Here’s the s&p chart where we can see the massive selloff.
Right now, the s&p is being supported by my blue dotted line and my orange line which are my Bollinger bands and moving average.
As seen on the left of the chart, in 2011. The market was being held there as well and got rebounded back.
So it does seems that this is a very crucial area for the s&p and the overall stock market.
If it does break through and closes below both of the lines, my guess is the uptrend for the stock market is over. Which means that, it could lead into a financial crisis.
Analyst are calling it way too early for it to be a financial crisis, and they could be right on that.
But if based on technical, and the overall economy. When it all sums up, this doesn’t look good.
In fact it looks real bad.
China the big dog is having a bad time over there, their economy is slowing so much that they have to devalue their yuan.
By devaluing their yuan, this means a lot.
It means that their economy can no longer sustain that their current rate. In other words, their economy is in deep shit right now.
US is in no better shape, all is probably good just on the surface where there are cracks lying deep within.
Europe, we wouldn’t want to even talk about it. Nothing much is really solved for the Europe issue. It’s just that people are closing one eye on it and hope for the best.
It’s going to burst eventually, there’s probably very little chance that Greece can recover. And there are so much more countries in the Europe zone that ain’t doing good that is just not being heavily publicised.
From what I see, this could be the start of a down time in the global markets.
And it is especially at these times where I’m glad I’m a forex trader and not trading stocks.
It’s because we don’t get hit. Yes the currencies are plummeting.
And that’s even better for us, because we can short the currencies and make a huge profit out of them.
Just like a trade I took yesterday where I shorted the nzdjpy.
Currency wise, nzd and aud is highly related to the Chinese yuan. Which means that with the slowing china economy, the nzd and aud isn’t going to do good.
When paired with a stable denominator, in this case I chose jpy. It shot right down big time with the big fall in the market.
So I entered at the top red line where It broke down from a sideways consolidation.
And my profit target is at the weekly white line (moving average) and blue dotted line (Bollinger band)
A nice 386 pips.
It went down in a day itself.
Entered 21/8/2015 , exited couple hours later 21/8/2015
Got out for $159,432.25
Not too bad for a days work isn’t it?
I don’t say this to brag.
I want to show people that it’s really possible to make money trading forex, and especially even more so in tough times like the massive dip in the stock market.
As forex traders, we don’t care. In fact, we love it!
And that’s the reason why I teach, some people ask if I teach for the money.
I earn more in a single trade than what I make teaching.
The real reason why I teach is because I truly believe that it’s my mission in life to touch and change people’s lives.
I need not need to teach, but I want to. That makes a difference.
All in all, my sentiment is that. If you are trading the stock market.
Hold your fire now if you think the stock market may rebound back.
I truly think it’s time to switch over to trading the all-weather tradable forex.
P.S. I urge you to spend 1 min to view what my students say on my reviews page. If by then, you still aren’t convinced that this is something different from all the crappy courses out there, then i rest my case. This is the real deal. This is Asiaforexmentor.