Market Volatility Update

Market Volatility Update 6-13-2022

by MoneyFlows Staff All, Members Only

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MoneyFlows Staff
MoneyFlows Staff

2 Comments

Thanks for the update! It would be interesting to see an analysis of what a true capitulation consisted of in the past. The Big Money Index is certainly a good indicator. But recently it just quickly dipped into oversold territory. Maybe that was not long enough? For Bitcoin capitulations, people look for spikes to the downside under extreme volume. Also the long/short ratio is of great interest: When the last longs have given up we have capitulation.
Thanks Beat. This morning appears that the start of capitulation was yesterday. Volumes were large and everything was sold. There was no leadership at all. Prior capitulation times saw bottoms form after huge selling was followed by days of big volumes with low signal counts. That would indicate short covering and usually leads to a bounce. The oversold signal from last month didn't include capitulation so it is very possible we revisit oversold again but on nastier data. Right now markets are digesting an unclear macro landscape with “no end in site.” Obviously eventually this wreck will end at some point. Investors need to see ANY signs of improvement on the macro front. It'll come. Hang in there!

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