A bluff or a reality is the ”free fall” to 50% ? B.Varchev

As we have predicted three weeks ago in an article published on our website, a sale and a mild (hopefully not real) panic are to come.

Markets are not either geometry or pure mathematics. Markets are the psychology of the mass. When we analyze a graph, we always try to “read between the lines”.

As we see right now: fear, sales and short orders globally. It was a matter of days all weekly support levels to be tested and they were, even later on. Today we had a “fresh low” as well – the new lowest bottom since the end of 2014.

What is about to happen? The boring technique suggests: the market is on a support level of a 200 Moving Average. It tests 23.6% of Fibonacci, unsuccessfully, for now, and a logical rebound from the lowest levels for the day.

I am returning to “the market psychology”.

The bravest fund managers and banking traders bought “cheap”. An annoying question today is, “are those perfect levels for short positions”, or we are going to listen to the Soros’ words – “analyze thoroughly for 30 minutes and when you reach a definite decision- “do the opposite”– in this case long positions, on low prices.

When the whole financial world is talking about one thing (panic now), usually the opposite happensnorth. Sustainable psychological manipulation: trading is a business with a final financial result of 0, from a worldwide perspective. In order for you to win, somebody has to loose or you have to at least be a little more right than the others.

Then how do the very few financial gurus’ earnings form- a question of simple mathematics and massive suggestions. We are in cash

B. Varchev