With the big sell off that we’ve had in January so far, I thought it would be a good time to talk about what might happen during the remainder of 2022, and in the years following.
Video duration: 38min 49sec
Thank you for watching this video and I hope you find it helpful.
Thank you Al, a very clear and logical explanation of how the S&P may play out over the next few months, year and decade. Very helpful.
Thank you Mr. Brooks.
I also invest in stocks, as a plan B, should I never succeed in becoming a profitable day trader.
My wallet was mainly cash, and indeed I think I will watch the market for at least a couple of months, more, until I can determine boottom and top of a possible TR, until I will start buying stocks again at regular intervals.
Hi Al –
Is there a way for one to create yearly charts using Trade Station? You mentioned the yearly charts were given to you by your friend, so I assume they were created with a different charting software?
Appreciate the Log charts view. Helps me to square these shockingly huge futures swings. Thanks as well for providing a clean streamlined presentation. As a new student I am curious how the the next e-mini contracts are being traded as well. As an outsider its difficult to gain an insider perspective of just how this trading industry really works. The news can only pretend to know. If they knew, they would all be traders! Time well spent. Thank you Mr. Brooks.
Hi Al.. great video. Quick question – you mention the Dec ’18 chart as a V bottom but don’t mention the March ’20 chart as a V bottom. Both like V-bottom-ish to me; can you please explain how they differ? Thanks -Neil
There is no widely accepted definition of V tops and bottoms. Whenever a higher low major trend reversal is likely, but it never clearly comes, most traders would be willing to call the reversal a V-bottom. Therefore, 2020 is another reasonable example.
I used 2018 as an example because the 10 consecutive bear bars was an unusually extreme streak and therefore less likely to reverse strongly up without at least a micro double bottom. I believed 2020 was trying to bottom for several weeks before the final bottom, and therefore a sharp rally was not as low a probability.
Hi, Al.
Thank you for the video.
I was wondering if you’ve ever considered writing a autobiography book. I sure like your stories, not only about your trading career but also your former life as a medical student and an eye surgeon. I loved the “special reports” during the pandemic and life lessons you wrote on those reports. The stories about your life would make a movie like Forrest Gump, they’re so interesting and fun and it feels like you have a lot of them. I’m sure all of us would love the opportunity to read such book.
I have to say as always very thorough and detailed analysis. Like you always say. Markets are fractal and I need to trade the patterns I see on the monthly and yearly as a you on the 5 min. One of my goals is when I become a hugely successful trader from your course, is to finally meet you and shake your hand for truly changing my trading life. Thank you again and God Bless!
Thank you Dr Brooks! That was an awesome, well explained status of the market. I really appreciate the reference back to when the stock market started. Great video!
Thank you Mr. Brooks for everything, you are my inspiration and I’m proud to have you as my teacher.
Thanks Al, best takeaway is longer term market always recovers to new Highs. Removes fear of catastrophy, hang on and you’ll be fine …
Thank You Al!
Thanks very much, Al! Excellent work!
Dear Al, thank you very much for everything..
Al’s mentioned his heavy short position day of 87 crash multiple times. I’d love to hear his thoughts/analysis on why he was short on open…set up prior to. It would be an interesting review of his trading plan at that time!
Thank you for your market summary in this great video. I’m often caught up in 5 minute charts and sometimes I look at the daily chart. Seeing the monthly and even yearly charts does provide a different perspective.
I feel right now that many traders expected a second leg down from the pandemic crash, yet that never came. During the pandemic many new traders came to the markets and have fueled the rally. Those traders might look back at the pandemic crash – the time when they started trading/investing – and expect the same thing to happen again with the next correction. So when we are down 20% or so they will buy heavily, but this time we will not get a V-reversal to a higher high. When the second leg down down comes around this time, these buyers might panic sell and now provide the fuel down for a strong second leg down as they have contributed to the incredible rally up since March 2020.
Retail investors have put the markets upside-down in recent years (GME, AMC) and I could imagine that institutions are having the longer breath in this game, trying to “take back” their losses from retail investors. A strong second leg down in this or a future correction might start this process. This – for me – increases the chances of a TR over a brief correction and quick continuation of the bull trend over the next months.
Thank you again for your outstanding content and commentary on the current state of the market and what to expect in the future.