2022/05/12 (045) Technical Analysis – NDX

NASDAQ 100 Loses 50% Of The Corona Recovery
And Marked A New Year Closed Low Today, On Thursday…
Not Only, But Above All, That`s Why I`m Closing This Short 4XSetUp!


Nasdaq 100 Loses 50% Of The Corona Recovery Bullish Upside Trend

It can go that fast. The pandemic bubble in the tech sector has now been corrected by almost 50%. This then shows that at some point the balance of the markets will be restored after all. I already pointed out at the end of last year that the tech sector will not have an easy year ahead. However, after this year’s sharp fall and a nearly 50% correction, I may be beginning to see some light at the end of the tunnel for medium-term tech stock investors. Of course, there is still no reversal in sight and it is therefore still necessary to proceed rather cautiously. But a bargain hunt could soon be kicked off!

New Year Low Close Marked Today

Technology stocks have been under a lot of pressure for weeks, with central banks often raising interest rates as an argument. The NASDAQ 100 index was not able to bring about any stabilization yesterday either, and the important support area around 13,000 points was abandoned. Within a week, the barometer fell back by a good 1,000 points, there are currently no signs of stabilization, but from a technical point of view a continuation of the current wave of corrections is likely. From the status quo, there is still short-term downward potential at 11,564 points, after a pullback back to 13,000 points, the final target of 10,500 points and thus the 38.2% Fibonacci retracement could be headed for as a logical target. One does not like to think of a bullish variant with the current chart image, an increase to 15,196 points could only succeed above 14,000 points. But only above this hurdle would an increase to the record highs of 16,764 points from the end of November 2021 be possible.

George Soros Is One Of The Master Mind Behind My Trading Capabilities- Of Course, I Mean That In The General Context And Not In Relation To This 4XSetUp

The theory is still to this day one of the soundest bases to understand how market participants interact in the market, and how their decisions are made. George Soros’ preposition was that investors base their decisions not on reality, but on their perceived reality. This vision is distorted by their beliefs, culture, and experiences. Their views and perception are therefore flawed and fail to incorporate basic economic and financial assumptions. Soros’ theory of reflexivity still holds true today, and it is perhaps the best explanation for how price actions work: “I can state the core idea in two relatively simple propositions. One is that in situations that have thinking participants, the participants’ view of the world is always partial and distorted. That is the principle of fallibility. The other is that these distorted views can influence the situation to which they relate because false views lead to inappropriate actions. That is the principle of reflexivity. We are accustomed to think of events as a sequence of facts: one set of facts follows another in a never-ending chain. When a situation has thinking participants, the chain does not lead directly from fact to fact. It links a fact to the participants’ thinking and then connects the participants’ thinking to the next set of facts.”

George Soros explained his theory of reflexivity with following words: Let’s deal first with your general theory of reflexivity. Essentially, it has to do with the role of the thinking participant, and the relationship between his thinking and the events in which he participates. I believe that a thinking participant is in a very difficult position, because he is trying to understand a situation in which he is one of the actors. Traditionally, we think of understanding as essentially a passive role, and participating is an active role. In truth, the two roles interfere with each other, which makes it impossible for the participant to base any decisions on pure or perfect knowledge. Classical economic theory assumes that market participants act on the basis of perfect knowledge. That assumption is false. The participants’ perceptions influence the market in which they participate, but the market action also influences the participants’ perceptions. They cannot obtain perfect knowledge of the market because their thinking is always affecting the market and the market is affecting their thinking. This makes analysis of market behavior much harder than it would be if the assumption of perfect knowledge were valid.”

“Second, since our understanding of reality is imperfect, the criterion by which choices may be judged is not fully within our grasp. As a result, people will not necessarily make the correct choice and, even if they do, not everybody will accept it as such. Moreover, the correct choice represents merely the better of the available alternatives, not the best of all possible solutions. New ideas and interpretations may emerge at any time. These are also bound to be flawed and may have to be discarded when the flaws become apparent. There is no final answer, only the possibility of a gradual approximation to it. It follows that the choice between alternatives involves a continuous process of critical examination rather than the mechanical application of fixed rules.”

The Market Price Action Is Still More Than Volatile On The Stock Market – Ups And Downs Are Still Extreme

This week we experienced again that the stock market rides a roller coaster even within a day. And that is highly unpopular with most financial market participants – especially analysts, commentators, as well as reporters in the so-called mainstream media – because it not only reveals the erroneous price developments, but rather also our imperfect self. Which deters most fellow human beings – and does not liberate them. Ego! What else? And that`s why the urgent need for clarification heats up in the mind, which in turn takes place in the volatile daily fluctuations! And all this just because the FED is raising interestrates? All this, because US inflation data was released this week? And all this, because the US trade balance was released? And all this, just because tomorrow the US import prices as well as US export prices will be published? The US Consumer Confidence Survey On Friday? Right! I agree! That’s it – what`s currently occupying financial market participants around the world! Me included – no doubt!. And that is precisely the responsibility that we media should live up to on a daily basis. So that our readers not only feel better informed, but rather are so much better informed daily, every day, that they have learned to describe in their own words what is.

What a noble job – editing and formulating each new DEVISE 2 DAY Edition! Just how helpful is it actually? Yes, exactly – I mean you? Have my previous individual issues been of any use to you? Has your portfolio performed better since then? Has your portfolio even increased in the meantime? Have you been able to learn at least one new old thing every day? I hope so…