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CakeTrades Sell Signal Does It Again

Futuristic Stock Market Exchange

In December of 2021, our proprietary market top indicator, the CakeTrades PCRI's, printed a sell signal. We issued the warning to our members, and global equity markets began the plunge that lead to the ongoing 2022 bear market.

As with any sell signal, we never know how bad the damage will truly be, though we can estimate using a combination of market breadth and technical studies. However, like in 2018 and again in 2020, we saw a decline that came suddenly and caught many by surprise.

Unlike these other periods though, our indicators never printed a bottom signal, and instead printed a sequential sell signal. This was the first time this has happened in the history of our indicator!

As you can see in this embedded tweet, our signals were distributed via our private Discord on August 18, 2022. SPX was near 4300 at the time, and since then, has dropped more than 15% to just fractions above the June lows.

August 2022 Stock Market Drop
During this time, stocks like Apple and Tesla, near all-time-highs just months ago, are now facing major losses. Meanwhile, semiconductor stocks such as AMD are broke lower to set new yearly lows.

Bonds too are under threat as yields skyrocket alongside the dollar. Crypto is barely clinging to support at the lows, and even inflationary hedges, such as energy, gold, and silver are now facing significant losses into the end of Q3.
How Low Can You Go?

Now that the bear market is out in full force, and the Federal Reserve seems unwilling to pivot, there are questions as to how deeply the losses can extend. Our models, which we update frequently to keep pace with the market, suggest the damage could lead us into SPX 3400-3500 before a small rally, perhaps closing out the year with a final bear impulse to test SPX 3k and NDX 10k.

Indicators Lead the Way
Regardless of how deep this goes, there is one certainty, and this is that our clients have been protected from losses on the long side thanks to our CakeTrades signals, and will be the first to learn when bearish positioning is replaced with bullish positioning, the early signs of a bottom.
How much money could you save if you learned how to exit at the top and buy back at the bottom?
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