Call it conspiracy theories or whatever, but there are reports that many of the "elite" were forewarned about what was coming and were able to exit the markets in January. This would not surprise me since many have long known how the upper level of society operates.
One of the constants with the markets appears to be the fact that a certain group of "insiders", bankers and whatnot, are able to exit the market before the collapse and have a lot of powder liquid to re-enter when things start to bottom.
The question is have they accumulated enough to let the market run or are we in for another leg down. Elliott Wave followers will know the later as a B Wave. For all others, we might have seen a "dead cat bounce".
Big money controls the markets. Just like with Bitcoin, there are Whales in the traditional markets. They, of course, dwarf the Bitcoin Whales in terms of wealth and power.
These people control hundreds of billions of dollars which they move in, out, and around the markets.
The key to making money is to know what they are doing, as much as can reasonably be surmised. Knowing what they are doing is very difficult until after it happens.
Based upon history, we do know that markets tend not to go down and then jump right back up. This is especially true when a recession is in place. Of course, we have no economic numbers thus far from the impact of the coronavirus. So, it will take a couple of quarters before we know how things stand.
One thing we can conclude, the longer this lockdown goes on, the worse things will be economically. We are almost halfway through April and there is no end in sight. Right now, the end of April is a guarantee in the United States, and that is a minimum. It looks like much of Europe will go through May.
Another thing we know is that B Waves are meant to "trick" the market. Optimism returned after the A Wave crash. Many feel it is safe to get back in the market. We also see FOMO in operation. Naturally, if the market does take off, it would be horrific to miss the sale that is going on.
The challenge is that this can be short lived. A dead cat bounce is just a hiccup in a larger bear market trend. Thus, those who get sucked in too soon end up getting obliterated. In reality, it is a chance for those without cash to exit the market to reload at a lower level.
So where are we at right now?
Did the major money players accumulate enough or do they need lower levels to pad their wallets a bit more?
This is the multi-trillion dollar question right now.
Optimism might be grounds for a homerun right now. Or it might be wildly misplaced.
Either way, I would suggest caution.
If you found this article informative, please give an upvote and rehive.
