| | | | TURNMIRE TRADING NEWS MINUTE
Countdown to The Greater Depression?
Jeffry often says “the news doesn’t make the charts”, meaning that people love to put stories to the way stocks move.
But often those are just repeating patterns continuing to play out long before the stories came out, and long after they’re gone.
In fact, he’s told us that the way he sees things, news tends to lag the charts by 6 months.
Take TSLA: The stock has been dropping for the better part of a year now. And while the Musk faithful remain steadfast as ever, negative news stories — sometimes of Musk’s own creation — continue coming out.
Recently, massive across-the-board layoffs have been hitting the company, including the entire team responsible for its network of Superchargers.
But despite the company’s recent earnings report indicating a massive drop in sales — among other problems at the company — the stock bounced immediately after earnings.
Why is this relevant to our conversation? Months before the earnings report came out — with the stock north of 250 — Jeffry called for a downside target of between 140 and 160.
For anyone not in the know, when TSLA bounced at 135 — and then jumped 40%+ after a negative earnings report — it all seemed like magic.
But as Jeffry always tells us, “it was in the charts.”
The past few days we’ve been talking about another pattern that he’s seen in the charts on IWM.
It’s the same pattern that enabled him to make $1 million during the Covid crash.
You can read more about it here.
Now, if that doesn’t convince you that these types of chart patterns start taking shape long before any negative news even starts coming out, we don’t think anything will convince you.
That aside, this isn’t just a standard crash, because for months — possibly over a year at this point — Jeffry has been warning about a big picture pattern forming on charts.
It’s what he calls “The Greater Depression” — as in “bigger than the Great Depression.”
Don’t worry. It’s not coming tomorrow. And probably not next month.
In fact, Jeffry tells us that’s the biggest problem with these kinds of predictions — timing. These long-term patterns could take years to play out.
He specifically referenced the crypto boom cycle which is currently underway, saying that this Greater Depression pattern might not begin until that boom cycle plays out.
It’s tough to say. For now, read up on our past 2 articles on the topic (Article 1, Article 2) and stay tuned. We’ll have our ear to the ground for any updates.
— The Jeffry Turnmire Trading Team
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