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The Building Of A Bubble?


For context, I highlighted the critical junctures of this subtle battle of control.


Are we heading towards the biggest market demolition in history? Let's get to a logical conclusion.


Markets have been aggressive in the past couple of weeks making it a bit difficult to catch intra-day swings. Meanwhile, VIX continues to slide lower to its 2020 lows. As per the pattern picked out in the BANKNIFTY chart we can clearly say that markets never crash without a warning. There's always enough time to figure out what is going on until the bigger move takes place.


How would you want to approach this situation from a trading perspective? If you break it down into a lower time frame NIFTY and BANKNIFTY have been quite bullish and have been taking fresh highs. While most people can't time the market it's better to trade the current situation rather than holding on to a view that may or may not happen. You don't want to be the jerk calling out for a crash every single day and losing out on the larger trend.


Having an alternative view is good. What's the worst that could happen? Your stop-loss gets hit and you reevaluate what you are looking at.