11/10/2018/08:10CET
Could this be the big one. Traditional markets are getting hammered mercilessly today.
In my coverage of the crypto markets, I also keep an eye on what the elephants in the room are doing..
Check this out....
The DOW jones industrial averages daily chart - over 3% down today!
Looks like the closing out of a double top.
S&P500 daily chart - over 3% down today too.
Might find some support here as this level coincides with 2 previous resistance points.
The NASDAQ daily - over 4% down.
Now playing in the basement as it has plugned through its 200dsma
And finally the Russell 2000 to round off the indices with the small caps.
Down through all moving averages and almost 10% down from peaks.
Individual stocks
We know that the major US indices are being supported by FANG stocks (or some fucked up derivative of a small group of love children)
This is Facebook daily! OUCH
Facebook is testing a double bottom here. They are well and truly in bear market territory with current price at over 30% down from peaks just under 3 months ago. They have left their moving averages to the downside long behind.
The darling of US tech, Apple
hurting today busting through its 50dsma and retesting the previous low here. Will it bounce?
Amazon following suite...
Google down 15% from peak but already well through their 200dsma
Google seems to be having a rough few days in fact.
So what is in the background driving this?
- Stock buybacks are getting more difficult with higher interest rates.
- As bond prices tank, yields rise making a switch to bonds more interesting.
- Emerging markets who borrowed in USD at record low interest rates are staring at a double whammy: higher interest rates and a strengthening USD which together compound the difficulty in servicing debt.
- oil price is steadily rising, and being priced in appreciating USD, another pressure point on EM's
- Nationalist sentiment around the world is in the ascent. Trump leads the way and is trampling on everything in his path. Some things need trampling, but in his wake, there is less and less trust or dialogue. Not good for sorting out big problems for the world.
So looks like out global 47 year debt supercycle is cracking up, and there is nowhere to run.
Logic would say that non counterparty assets will be where this over inflated bubble of fiat money will run to.
Only time will tell.