The supercomputer that monitors the stock market for Didier Sornette has diagnosed a bubble in four sectors of the market and has recommended shorting the FANG stocks. <\/p>\n
Sornettes bubble calls result in a crash of at least 20% roughly 60% of the time. In those cases, the crash reaches its target within two weeks of the bubble call. <\/p>\n
The other 40% of the time, the market starts a sideways move that can take months but usually breaks out downwards into a correction of at least 20%. Occasionally its less, like 15%. It can be a lot more (like the dot-com crash). <\/p>\n
Occasionally the sideways move is fast and results in an upwards breakout that extends the bubble. You can get a few of these extensions (as at the top of the dot-com bubble) before a bigger crash. <\/p>\n
QQQ is a Favorite to Put In a H&S with a Triangle Right Shoulder Here (Green Scenario) <\/p>\n
is potentially putting one of the strongest possible topping patterns on its daily charta head and shoulders with a triangle right shoulder. The likelihood of that topping scenario is increased by the big red candle QQQ put in a June 9. That was a Neely short set-up for a retrace of the move out of the February 2016 low. <\/p>\n
QQQ Needs a Retrace to the Bottom of its Light Blue Rising Wedge and Navy Blue Megaphone VWAP <\/p>\n
QQQ needs a serious stab at a retrace to VWAP of its navy blue long-term megaphone, which started forming in July 2014, to be legal for an upwards breakout from the megaphone (green scenario). That would also retrace the light blue rising wedge. <\/p>\n
QQQ could also go all the way for the navy blue megaphone bottom, but the fast topping process in the green scenario would make that scenario less likely. <\/p>\n
The purple scenario becomes more likely if QQQ goes for delay and a more extended topping process. The charts are aligned beautifully with Sornettes call. <\/p>\n
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Sornette Supercomputer Calls For A Crash - Investing.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The supercomputer that monitors the stock market for Didier Sornette has diagnosed a bubble in four sectors of the market and has recommended shorting the FANG stocks. Sornettes bubble calls result in a crash of at least 20% roughly 60% of the time. In those cases, the crash reaches its target within two weeks of the bubble call. Continue reading