12/1/2014 – A down day with the Dow Jones down 49 points (-0.27%) and the Nasdaq down 64 points (-1.34%).
As crazy as it may sound, the Nasdaq hasn’t had a correction of today’s magnitude since hitting its secondary bottom on October 16th. And while most market participates will dismiss today market action as a simple correction in this never ending bull market, perhaps they shouldn’t.
Today’s action in Apple (AAPL) is a perfect illustration of that. While everyone is trying to figure out why Apple (the most liquid and the most “amazing” stock ever) cratered close to 6% in 3 trading minutes…..This is why Apple shares sank earlier: Pros……a different question should be asked.
Can the overall market experience such a flash crash?
If there was ever a time to say “YES“, this is it. Massive overvaluation levels, rampant speculation, no bears, record bullish margin interest, tightening, collapsing yields, undying believe in Santa Claus rally, etc… You get the picture. Maybe not in 5 minutes, but it wouldn’t be unreasonable to find the Dow at October lows by the end of the year. As always, the stock market tends to do what most people believe is unlikely.
In other words, we might get a Grinch rally instead of a Santa Claus rally everyone expects.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. December 1st, 2014 InvestWithAlex.com
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