MENT Grey Swan Warning

September 12, 2020: Released Jointly by MENT.COM Technologies and The Technical Traders LTD.

Our researchers believe a major price event, we're calling it a Grey Swan” event, is about to unload on the US and global markets. Our deep market cycle research suggests a major price event is about to unload on an unsuspecting market. After the US Fed and global central banks have poured trillions into preventing the COVID-19 virus event from disrupting capital and credit markets, we are now at a point where a confluence of major cycle and price events appear to be converging.

We are terming this setup a “Grey Swan” event. What is a Grey Swan? We believe a Grey Swan even is an event that is clearly evident to investors and traders given the economic data, future economic expectations and the phase of the market trend. Currently, we are in what we believe is an “Excess Phase” - which is very similar to the 1998~1999 DOT COM bubble rally. This phase is indicative of spiraling upside price trends based mostly on speculation and retail trading – ignoring the obvious liquidity, solvency and future economic expectations of the organic local and global markets.

A Grey Swan Event is the sudden realization that the party won't go on forever – much like the end of the DOT COM bubble. Where traders/investors suddenly realize the current price levels and valuations of a hand full of stocks are so disconnect from the reality of the market that the markets contract away from these risks. Think of it as “we should have seen it building, but we were too busy trying to ride the upward trend that we didn't pay attention to the risks”.

THE SETUP – POSSIBLE MASSIVE PRICE COLLAPSE IN THE WORKS


The setup is most clearly seen in the SPY and the FAANG index. A clear downside price rotation has taken place and there is a very clear support level that is in place on the chart. If this support level is broken to the downside, we believe a much deeper downside (unwinding of risk) will take place prior to the US presidential elections. If this support level is not broken over the next few days/weeks, we believe a moderate upside price move will take place to setup an ultimate peak in the markets within about 14 trading days. Eventually, this ultimate peak will likely present another volume price rotation in the markets that may present the real final top.

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