Although I no longer use technical analysis for trading it is easy to see that based on technical indicators, the stock market is ready to simply disintegrate. It might as well be held up with toothpicks. Without organized support, the market would have already collapsed. My position for years there has been, that there is an ongoing movement that is designed to concentrate assets into the hands of the world’s wealthiest citizens. The quote below is from a 2019 article, A Nation Of Fools.
“The goal of the asset enhancement initiative is to is to concentrate stock ownership in the hands of a few who then decide what everyone else pays for shares of stock. Is there a theory behind this process? Of course there is. The theory is that high stock prices become a new normal. Keep security prices rising and the economy will follow and so on. Has GDP responded well? GDP is officially very good but how good is it in reality? It is hard to find growing prosperity within the masses who work very hard and come home tired everyday. We do have more working and making less per hour. Government spending is counted. When GDP needs to look good, government spending can be increased in whatever amount is needed for the purpose of publishing good looking numbers.”
There are monumental efforts going on to prevent this from happening. That doesn’t mean it won’t happen.
In the case of any rapid decline, there is a plan to bail out industries which posses massive political power. Certain of these industries have symbiotic relationships with government. The existing order cannot do without these industries, and those industries cannot do well without government. Chances are very high any and everything will be done to keep the current situation in tact.
Most likely, in the case of a crash or anything else, there is a plan to bail out the tech industry. Trading may be halted before significant damage is done. Perhaps the tech industry is poised to be at least partially nationalized. If that is the case, insiders to the industry, would be paid astronomical amounts of money, for their interests in each corporation. Special deals are likely to be made to accomplish similar things in the healthcare industry. The healthcare industry has lobbied its way to controlling from 15% to 20% of the nations income. That arrangement won’t be let loose of automatically. There may be a special deal in the offing for healthcare also. If all evaporates in one day, it will be very hard to implement these deals. A lot of it depends on the willingness of the public to jump on board like they always do. The patriots must suffer so as to save the country scenario could actually be radically opposed this time.
I am still not short for the above reasons. All I have at risk are a few positions in a few bear etfs. There will be monumental efforts to prevent stocks from falling too far too fast. I have no way to trade a politically managed stock market. I admit it.