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Tuesday, October 18, 2022

INSANE MARKET RISK: Who's Ready For Round Two? 😵

In answer to my question above, I'd say anyone who loves risk in BTC/USD, ARKK, and FNGU...and, even, NDX.

But, if you want to protect what cash you have left, beware of their extreme volatility (proclivity toward parabolic whipsaw swings) and weakness!

The following weekly VXN:NDX ratio chart depicts the wild volatility swings over the past five years. 

I don't believe that capitulation has been achieved in the NDX, yet..not until the ratio hits 0.0060, or even higher toward 0.0120.

In this regard, watch for a bullish Golden Cross to form on the weekly MAs, the RSI to remain above 50.00, and the bullish crossovers to hold on the MACD and PMO, to confirm this possibility.