Is this a repeat of what we saw in late '07-'08. It's too soon to say, but the similarities can't be ignored!
Last year some people were claiming that the charts were reminiscent of the crash of 2000, and I debunked that.
Comparing Today's Market To The Market Crashes of '08, & 2000
Today, I'm seeing something in the banking sector charts, that looks eerily similar to what we saw just ahead of the crash of 2008, and I suppose that's why I'm up at 2-3AM - most days - analyzing the action in Europe! More on that in a minute.
$DJUSFN (Financials) Monthly Candlesticks - For those who missed the banking crisis of '08, this is the chart most of us used to track the financial collapse. The Dow Financials, or the $IYF (which is the corresponding ETF). Of course many traders like to use the $XLF, but I find it to be less accurate...
What I want to draw your attention to on the chart below is the similarity of what we saw in late '07, and what we just saw in March 2023. Very similar timelines, and big red candle taking out support.
Taking a closer look at how this take down was engineered
$BANK (Bank Index Nasdaq) - It looks like this collapse was planned for at least 10 months, and no doubt bearish Options were purchased during that time. This explains why the $VIX was mercilessly hammered - lower - during the same time frame. The lower the $VIX the; cheaper the Puts.
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