FED Balance Sheet Projection Using Technical Analysis
This chart refers to the total assets owned by the Federal Reserve System. Essentially, if this chart is contracting, there is less liquidity in the economy/markets, if it's expanding, there is more liquidity. If this chart enters its expansion phase, we can expect risk assets to pump, reaching new all time highs and the dawn of a new super cycle. This doesn't happen often.
When we look at previous patterns, it looks like this chart has lined up for its next big move up.
Firstly, if we look at the similarities between the previous cycle and the present moment, we have a retracement to the 38.2% Fibonacci level, a slight dip below the weekly 200 EMA, and a stronger oversold reading on the RSI. It looks like WALCL is ready for another move higher, this would signal another round of QE by the FED.
For targets, we looking looking at the same target as the previous cycle, the 4.618% Fibonacci extension level, coupled with a confluence of the 1.618% projection, this would result in an increase of 288% in the FED's Balance Sheet, a massive move up and would result in an absurd amount of money printing and inflation.
If this projection plays out, the cryptocurrency, housing and stock market will absolutely skyrocket. Now is the time to consider loading up on some risk assets and protect yourself from the inflation that is to come, it's likely to be hyper inflationary. The definition of hyper inflation is: "Hyperinflation is a severe economic condition characterized by an extraordinarily rapid increase in prices, typically defined as an inflation rate exceeding 50 percent per month."
Let me know what you think.
Trade safe,
SunnyHillCapital
When we look at previous patterns, it looks like this chart has lined up for its next big move up.
Firstly, if we look at the similarities between the previous cycle and the present moment, we have a retracement to the 38.2% Fibonacci level, a slight dip below the weekly 200 EMA, and a stronger oversold reading on the RSI. It looks like WALCL is ready for another move higher, this would signal another round of QE by the FED.
For targets, we looking looking at the same target as the previous cycle, the 4.618% Fibonacci extension level, coupled with a confluence of the 1.618% projection, this would result in an increase of 288% in the FED's Balance Sheet, a massive move up and would result in an absurd amount of money printing and inflation.
If this projection plays out, the cryptocurrency, housing and stock market will absolutely skyrocket. Now is the time to consider loading up on some risk assets and protect yourself from the inflation that is to come, it's likely to be hyper inflationary. The definition of hyper inflation is: "Hyperinflation is a severe economic condition characterized by an extraordinarily rapid increase in prices, typically defined as an inflation rate exceeding 50 percent per month."
Let me know what you think.
Trade safe,
SunnyHillCapital
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.