Beginning of a Global Crash

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.

For charts the author can be contacted at: riskadvisory@outlook.com.

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.