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Yearly graph of VIRA analysis on market crash of 1929

 

Well it is back in 1929 and you have the power of Vira…   Well you don’t really because of obvious reasons: (1) we can’t -yet- to go back in time and (2) if you did, your smart phone wouldn’t work would it?

But we will analyse the market crash of ’29 all the same.  I know it has been done to death, but not through Vira, which will give it a new perspective I think.

Imagine you are back then and that you do somehow have the power of Vira (well in essence you could’ve done it since the maths used for Vira  have remained the same through the years; more on the maths on later posts).  We will do a re-enactment of the most important signals that you would have seen though the glass of this methodology.  We are showing all the year 1929 through the Dow Jones Industrial indicator.  You could argue that we could’ve zoomed in to the weeks or days prior to the crash… but in reality nobody saw it coming, and they were all taking decisions based on the yearly info available to all.

0 – Thursday July 11, 1929.  I was going to start this series in event No.1, but after considering it for a bit I though it was best to start in a signal to get in to the market.  This is shown in event 0, that Thursday was a good day to get in.

1 – Tuesday August 6, 1929.  This is the first indication in Vira to watch it, the streams have crossed (yes, just like in Ghostbusters) and there is an indication that people are leaving the market and that the price is climbing.

2 – Monday September 9, 1929.  This is the peak of the sell zone.  The delta between Price and Volume is at its highest and it can be seen in the Dow that after this peak it all starts going pear shaped.

3 – Wednesday September 25, 1929.  This is the last cry to get out, by now it is a “Please for the love of all things get out now!” kind of signal.  The shares traded start to climb significantly, and in hindsight we know that it is panic building up.

Black Tuesday – October 29, 1929.

Events 4 and 5 are a long shot… nobody in their right minds would’ve gone back in, but there were some opportunities still to make some of that loss before Christmas.

4 – Monday November 11, 1929.  Big delta of price and volume.  Signal to buy, but as I said it was not for the frail of spirit.

5 – Friday December 13, 1929.  And this is the exit from the last buy signal, albeit it is a very very washed up one as you can see from he difference between price and volume.  Yes, there was money to be made between November and December 1929 according to the information out there.

So here we have it, the market crash of 1929.  The crash analyses have the aim to learn from the extreme circumstances about the application of Vira and how to read it.  I hope it is helping, comments are welcome of course.

 

 

 

 

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