Beginning of a Global Crash
Global Indices
Sometimes
the only trace that the markets leave before a crash is an innocuous small weekly
hanging man candlestick pattern, which no one suspects and the following
confirmations are too expensive for anyone to bear.
What
we are witnessing in the Global Financial markets is the beginning of a crash led by the US indices in which the Global Indices can lose approximately 50% of their peak values achieved.
The price correction can be abrupt but the time correction can be expected to continue
over a long period of time. This may lead to stagnation of the economies
because of the ensuing liquidity crunch and inability of the corporates to raise cheap money for
new projects.
Crude Oil
Crude
Oil is bearish for a very short term (a month or so) in a confirmed bull phase.
Crude oil in an upward trend will lead to inflationary pressures globally.
To sum
up Global economy is entering into a phase of Stagflation for a long duration.
DISCLAIMER:
These extracts from my trading files are for
the purpose of education only. Any advice contained therein is provided for the
general information of readers and does not have regard to any particular
person's investment objectives, financial situation or needs and must not be
construed as an advice to buy, hold and sell or otherwise deal in commodities,
currencies, indices, securities or other forms of investments. Accordingly, no
reader should act on the basis of any information contained therein without
consulting a suitably qualified financial advisor in the first place.
