Christian Schwarzer Velazquez @Khrix69: "📉🚨 Historic Green to Red:..."

Spain

📉🚨 Historic Green to Red: The Market’s Turning Point ⚡️ The market does the most unpredictable thing at the most predictable moment. As I gain more experience as an investor and stay up to date on market movements, in recent years I’ve been able to conclude that, in many cases, the market finds a bottom or a top when no one is expecting it. This already happened during Covid 20, when economies were shut down, there was no visibility into the future, and the market rebounded historically, or in 2022 when everyone was pointing to 3000 points on the SP500. Yesterday was a magnificent example of this: we’ve had months and months of small corrections followed by bullish impulses that continued after; in every abrupt drop there has been an equally abrupt upward move to break new highs. This impulse-pullback pattern has been installed in the minds of investors: every drop seems like Easy Money, Safe Money, and it is taken for granted that what has occurred in the recent past is what will happen again. There is a Buffett quote that goes more or less like this and I love it: “People tend to overestimate the probability of something happening if it has just happened, and underestimate it when it hasn’t happened recently.” Yesterday, $NVDA (NVIDIA Corporation) beat every possible expectation, but the most important thing wasn’t that: it was that it cleared all doubt about whether we are in an Artificial Intelligence bubble or not. Clearly, yesterday it became clear that this is no longer a bubble; demand seems to be more recurring than it appeared and every doubt was cleared by raising guidance and seeing that the company is re-accelerating. We were coming from very red days and moderate declines considering the huge rally we’ve had, but the market and investors were already calm yesterday and fully confident that $NVDA’s earnings were the perfect excuse to return to the bullish trend and break new highs like the last dozen times. Needless to say, yesterday the market reversed in a historic way. I don’t remember such a savage Green to Red like the one yesterday, where a day of moderate gains turned into a nightmare for many. Yesterday was what we call a “climax moment”, where the market tops out and, despite magnificent news, falls. This does not imply that we are facing a new bearish trend like 2022, but the sentiment has changed, at least in the short term. Another topic I would like to touch on is that many fundamental and purist investors only focus on qualitative and quantitative fundamentals of companies, claiming that they are happy buying the dip and do not care about the share price. This is pure ignorance. Companies listed on stock markets are not private companies: they depend on investor sentiment; you are trading publicly, therefore completely ignoring technical analysis and market psychology is a totally ignorant act. It’s like saying you’re going to open a jewelry store in a neighborhood full of crime, but you don’t care about the crime because your jewelry is high quality… If the neighborhood is full of criminals, be careful, because you might never be able to bring out your value. Many wonderful companies had to be acquired and taken off the market precisely because of this. Omitting, ignoring completely technical analysis and market momentum is a mistake that many purists make. When you operate in financial markets, if you want extraordinary results, you must not only be an investor as if you were investing in Private Equity: you must learn to be a Trader, read the chart, understand what a candle tells you, study supports and resistances, learn to read volume and Price Action. At the end of the day your company is trading publicly and, before fundamentals, it moves based on capital flows entering the stock and investor sentiment at that moment. You must be Investor and Trader at the same time. Business and Market. We are not trading in a private market. That said, although today we find some relief, according to my technical analysis, we may be facing a somewhat larger drop, not catastrophic, to clean the market, trigger stops and search for liquidity at lower levels. The market is holding the EMA 100 at this precise moment, but I see no type of Price Action in the zone, so I do not rule out further declines down to the EMA 200, which coincides with a very important support. If this scenario occurs, I will be prepared with Cash to enter aggressively. Meanwhile, hands still. Best regards, Christian $SPX500 $NSDQ100 $BTC $ETH $TSLA (Tesla Motors, Inc.) $NVDA