10/26/2015 – A flat day with the Dow Jones down 25 points (-0.14%) and the Nasdaq up 3 points (+0.06%)
I continue to maintain that most investors have the wrong interpretation of today’s market. And instead of thinking about today’s market environment as the next stage of a bull market, they should acknowledge the fact that this might be an opportunity sell and/or to even go short.
Serious market practitioners should spend a few minutes on this very important article. Stock Market Remains Headed for a 2007 or 1929 Crash
The market itself is the final arbiter, though, and there is no guarantee that this echo will become the repeat, or even the rhyme, of 2007. Nevertheless, to remain fully invested in the market, not to mention leveraged, for the marginal reward of a slightly higher new high, while taking on the risk of what came in 2008 could be reckless.
Unfortunately, most investors will dismiss the article above by shifting their attention to metaphors such as “American capitalism never fails, technical analysis doesn’t work, market patterns don’t repeat themselves, etc…..”
They are wrong.
The article above is right on the money. My work confirms the same. There is something seriously wrong with the internal and mathematical composition of the market at the present moment. If that wasn’t enough, fundamental and economic gauges continue to fall. Thus far, the S&P’s forward guidance has fallen 2%. That is the biggest drop since 2008.
Not a good sign when we are selling at the 3rd highest valuation level in history.
Finally, structural or directional moves don’t tend to develop in the fashion we have seen since August 24th or September 29th bottoms. Meaning, their velocity and angular composition suggest corrective motions.
In other words, “Sell The Rally Buy The Valley” expression might work very well here.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. 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. October 26th, 2015 InvestWithAlex.com
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