Bulls Are Back.....Is It Time To Short?

Daily Chart January 21st

1/21/2014 – Another positive day with the Dow Jones up 39 points (+0.22%) and the Nasdaq up 12 points (+0.27%)

The market continues to spin its wheels. In the meantime, the bulls are back with the vengeance, despite the Dow being down 3% since its December 26th top. Consider the following news flow.

International investors are the most bullish they’ve been on the U.S. markets in more than five years as America is seen as a bright spot in an otherwise worsening global economy, according to the latest Bloomberg poll.

Same old, same old. The only reason America is viewed as a “bright spot” is because investors have not yet lost faith in the FED. Or I should say the massive liquidity fraud perpetrated by the FED. You can’t print your way into prosperity and once investors realize that, well, watch out below.

The cold hard truth remains. The stock market is in a massive overvaluation bubble. By any historical measure. Margin debt is at an all time high. Yields and commodities are collapsing (suggesting a big recession ahead). And as suggested above, bullish animal spirits are alive and well. As a result, investors should pause and ask themselves if RIGHT NOW would be a good time to reverse position and go short. At the very least, to go into cash.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. January 21st, 2015 InvestWithAlex.com