More evidence is building of a steep decline. Iāve been short since mid January and believe there is much more downside to come.
Why?
Because the Mag7 and tech are all showing signs of major decline.
All being led by NVDA 0.00%ā
Remember - in every bull market - winners lead on the way up. And in the bear market that follows, lead on the way down.
NVDA is screaming āsellā. Many stocks are following suit.
Facebook, Google, and others have glaring and blaring sell signals.
I wonāt share all the charts with you - so you can go and see for yourself.
But hereās what to look forā¦.
How to See These Sell Signals for Yourself
Pick your favorite Mag7 or other tech giant like NVDA 0.00%ā or META 0.00%ā or GOOG 0.00%ā etc.
Use quarterly candle charts - where each candlestick is 3 months. This will give you a ābirds eyeā view of candlesticks - meaning, 2 candlesticks = 6 monthsā¦ 12 candles = 3 years, etc.
Next, strap on Bollinger Bands, default settings (20,2)ā¦ and look for price at the upper Bollinger, meaning, price is at an extreme.
Look for candlestick patterns like the Shooting Star and Bearish Engulfing, meaning, there is major reversal psychology at play.
Add the Chaikin Money Flow, and look at the decline in institutional money flows, meaning, the big boys are quietly unloading shares.
Look at volume and notice itās declining, meaning, bulls are running out of steam as institutions quietly sell, and the public becomes the new ābullā.
What will you see if you follow these steps? Signs of a major reversal in almost anything you look at.
Brace yourselves.
It feels like itās going to be a steep decline.