5/19/2016 – A negative day with the Dow Jones down 92 points (-0.52%) and the Nasdaq down 27 points (-0.57%)
Open any financial terminal today, without looking at where the market is, and you are surely to assume, on the sentiment basis alone, that we are getting close to a multi year low. An environment similar to what had happened at 2002/2003 and 2009 bottoms.
Consider the following news flow over the last few days.
- This time full of peril may herald the beginning of ‘the liquidation’
- This S&P 500 Death Cross Could Be The Real Deal
- Soros Fund Management outlines new allocations
- The S&P 500 could plummet to 1,573 this year
- The stock market is behaving the way it did back in 2000
- Gundlach Says Fed Ready to Raise Unless Economic Data Weakening
WOW….and people think I am bearish.
And there lies the problem. Considering where the market is today, just a few % points away from all time highs, we are left with two possibilities. Well, maybe three.
- A major and violent drop on all indices. To allow the market to catch up to rotten fundamentals and to correct various overvaluation excesses.
- A powerful rally into some sort of a blow off top. To destroy most of the bears one more time, to shift sentiment reading and finally, well, why the hell not.
- A range bound market for many years to come.
Obviously, at the present moment both bulls and bears can make a nearly bulletproof case (fundamentally or technically), to support their points of view. But that doesn’t necessarily answer the question.
To understand what the market will do next investors must dismiss traditional analytical tools for the benefit of the tools one of the best hedge fund managers of all time discusses here. Jim Simons Gives Away His Secret To Market Timing
And what do these mathematical and timing tools tell us about the market?
Quite a bit. First, they tell us exactly what the stock market will do next. Rally, breakdown or remain within a trading range. Most importantly, this work yields exact time frames associated with all of the above. So, if you would like to find out exactly what the market will do next, please Click 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. May 19th, 2016 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
