WHAT IS CONVERGENCE?
: to tend or move toward one point or one another : come together
The 2020 stock market crash, also referred to as the Coronavirus Crash, was a major and sudden global stock market crash that began on 20 February 2020 and ended on 7 April 2020.
The crash was the fastest fall in global stock markets in financial history and the most devastating crash since 1929. The crash, however, only caused a short-lived bear market, and in April global stock markets re-entered a bull market V shaped Recovery, which would continue until late November of 2020. The crash signalled the beginning of the COVID-19 Recession.
Before and during the initial V shaped recovery, three types of major stock patterns emerged:
1. Those stocks that were worthy to own during the Covid-19 outbreak (i.e. "Covid Stocks") such as ZM, DOCU, PTON, AMZN, CLX, WMT.
2. V shaped recovery stocks (S&P 500/Most Tech Stocks).
3. L shaped (non-tech) stocks across multiple sectors, which follow a similar pattern to BA (Boeing). Most of these stocks attempted to join the V shaped recovery but were rejected and continued to consolidate.
In simple words, the 2020 Market Convergence Theory anticipates for S&P 500 and Tech to allow non-tech sectors to catch up before market can reach new heights, then rally together to S&P 4,150
These are the stocks that are still in L shaped consolidation. These are the stocks that are still awaiting on a catalyst to rally. Learn how to spot the baseline common denominators in our private chat room.
Stocks in emerging phase have completed consolidating and are retesting initial rejection experienced earlier this year. Learn how to identify initial recovery rejection peak in our private chat room.
These are the stocks that are in an advanced phase of convergence, have already surpased previous major rejection/resistance and are forming new consolidation/patterns before reaching for new heights. Learn what these converging patterns are in our private chat room.