The following is part of Pivotal Events that was published for our subscribers February 1, 2018.
We started using the phrase in December 2016, because of the new Pro-Business Administration. On the big technical surges, we dropped the "Rational".
The DJIA zoom has reached a Weekly RSI of 92. As noted last week, the highest reached for the Nasdaq in the Dot-Com mania was 84.
Also, the Fibonacci has reached a possible target, built upon the major swings since the panic ended in March 2009.
Clearly, "Irrational Exuberance".
The NYXBT (NYSE Bitcoin Index) soared to 18732 in mid-December and the break is turning into a major hit. The index is at 9345 and the 20-Week ema is at 10125, which is a serious take out of support. Individual examples such as RIOT have been smashed.
The take away is that the sector accomplished a climax within our December-January window. This correction could lead to the Bitcoin bubble entering a long contraction. This would be the speculative part, as with RCA in the early 1930s, or Western Union Telegraph following the 1873 Bubble, the technology continued to advance while stock prices went down. Bitcoin and Blockchain technology will continue its phenomenal progress.
The ChartWorks reviewed the Qualcomm blow-off at the turn-of-the-year in the 2000 peak, and is updating it.
Retail Trade Is Back!
- Back in the late 1960s, we used to use the ratio between trading volume on the American Stock Exchange and the NYSE.
- This kept track of the amount of trading on a speculative trading floor.
- The ratio would soar to a peak in the overall stock markets.
- Today's equivalent is soaring now.