Scariest chart of the week?

My friend sent me a chart, which I wish I could share with you on Halloween eve as he called it the scariest chart of the week.

How scary? First look at this picture, the scariest balking bitch you can find at the moment😏😇 By the way, bitch is a kind of female dog, malicious though. That's why it really fits this guy perfectly in my mind!

Joking aside, here the chart.....

This is a chart of the Volatility Index for the Russell 2000 (RVX). And, the more I look at it, the more I also believe it's perhaps the scariest chart in the market. But you need some basic TA knowledge to understand it. 

In a nutshell, RVX is showing a quite bullish configuration by closing above all of its various moving average lines. More specifically, the short 9-day EMA (red line) above the 20-day EMA (green line), and the 20-day EMA above the 50-day MA (blue line). Technically speaking, this is called golden cross, often leads to a powerful breakout. A similar setup was seen back in Feb last year also shown above, which led to an explosive move shortly afterwards. When volatility moves up, it usually means an explosive plunge for the underlying index tracked by the volatility.  

Of course, there is no certainty that the market must go as it seems to be poised. This is especially true about the timing. Oftentimes, the Market God just gives some hint what he is going to do without telling us when that will happen. But time and time he has demonstrated his mighty power to punish those who ignore his signals. I think no difference this time.  My best guess is that the market may continue to chop around for some time to allure more FOMOs into the game before a fatal strike comes! I won't be surprised to see something similar to last Mar to hit the market again in the next few weeks. May not be as severe as it was but likely equally powerful in terms of the extent for the panic it will cause. 🤕

By the way, if you don't know yet, there is another brand new social media, SafeChat, available now. Per SafeChat,  it is a secure & safe social platform run to a high moral standard—they put people first. Secure Chat - They have end-to-end encrypted conversations to protect users. - One to one video and audio call with end-to-end encryption. - Password protection available for every group conversation. It basically combines all the major functionalities of social media into one powerful platform and most importantly it is much safer than the junky social media like WC, FB or Twitter that are deteriorating morally faster and faster.

I have registered as 深山老林 at SafeChat and I will set up a new chat group and gradually shift our major social media interactions to SC instead of WC. If you'd like to join my group, sign up a free SC account easily and search for me and connect me as friends.  For friends sharing  similar conservatism views, let's come together to form a better chatting group that won't be constantly disturbed and harassed by radical censorship!