In 1720, the South Sea Bubble became one of history’s most infamous speculative disasters.

Founded to manage Britain’s national debt and exploit South American trade, the South Sea Company whipped up a frenzy, promising immense riches.
Shares skyrocketed 700%, only to crash 85% by October.

The company’s valuation briefly surpassed Britain’s economy, leaving thousands bankrupt when the bubble burst.

Corruption, greed, and easy credit fueled the mania. In the aftermath, reforms were introduced, but the South Sea Bubble remains a stark warning about the dangers of unchecked speculation.

The U.S. added a whopping 256,000 jobs in December, smashing expectations and dropping the unemployment rate to 4.1%.

This strong jobs report rocked markets, sending Treasury yields higher, with the 30-year yield topping 5% for the first time in over a year.
The Fed’s rate cut narrative is fading fast, with some analysts now debating potential hikes instead of cuts.
Stocks, however, retreated as markets grappled with the implications of a resilient economy and stubborn inflation. The 2s10s yield curve reached its steepest point since 2022, while gold surged over 1%.

Here’s what this means for traders.

The Buffett Indicator, which compares the total market cap to GDP, sits at 202.2% – well above the 100% overvaluation threshold.

With the Total Market Index at $59.4 trillion, it signals a potentially overpriced stock market.
While this ratio offers a macroeconomic lens into market valuation and trends, limitations like rising corporate profits and globalization can skew its implications.

It’s a useful tool but not a standalone market compass.

Thursday’s half-day trading session keeps the market on edge ahead of Friday’s Non-Farm Payroll release.

SPX consolidates near Bollinger band lows, with a speculative Tag ‘n Turn bullish entry off a potential symmetrical triangle.

The daily chart shows indecision, while 30-min charts hint at a push toward the psychological 6000 level.

For now, it’s all about patience and preparing for potential fireworks post-NFP.

Chart patterns evolve in real time, unlike textbook examples. The double bottom on SPX is morphing, potentially into a triangle pattern.

Missed trades due to external factors can’t be chased without risking account stability.
$ADD suggests a slight bullish move, but patience remains key as we await a clear breakout amidst market uncertainty.

The bullish bias continues with SPX pushing through the 5940 trigger, but conflicting signals emerge.

A textbook double bottom eyes 6050, while a head-and-shoulders looms below 5850. Yesterday’s reversal hints at a pause before any clear direction.

I’m holding my bullish positions but waiting for a conservative bearish trigger before flipping.

The SPX remains caught between conflicting signals as global events weigh heavily on sentiment.
A double bottom at 5850 may indicate support, but the lack of bear pulse bars keeps bullish trades in play.

Price action through the bear/hedge trigger at 5865 hints at bearish potential, but patience is the name of the game.
This muted “Santa Rally” period could spell caution for the year ahead, according to seasonal trends.

The market keeps us on edge, flipping between a bullish Santa Rally and bearish rug pulls. SPX needs to push through 5940 to solidify its bullish stance, while the bearish trigger sits at 5865.

Despite a dip, no tradeable bearish pulse bars have emerged, so bullish swing positions remain in play.

The tug of war continues until Friday, keeping everyone guessing!

Despite no Santa Rally yet, SPX remains poised for a potential bullish push as the week unfolds.

Bearish triggers lacked momentum, and $ADD’s bearish extreme suggests upside potential.

Overnight futures show promise, and the Tag ‘n Turn system is ready for action. A bullish start to the year might still be on the cards.

SPX rebounded sharply after Thursday’s sell-off, forming a potential inverted head-and-shoulders pattern.
Friday’s candle hinted at a narrow-range day, but bearish triggers remain absent.

Price retests its daily rising channel low, keeping the bullish bias intact. With $ADD at a bearish extreme, a short-term bullish move could kick off this shortened holiday week.

As these income swings will profit from sideways-to-bullish action, no immediate action is required unless SPX pushes below Friday’s low.