5/5/2015 – A down day with the Dow Jones down 142 points (-0.79%) and the Nasdaq down 78 points (-1.55%)
Despite bullish spirits running high, the stock market has been stuck in a flat trading range for over 10 months now (NYSE). And while most stock prices are miraculously maintaining their upper range, fund outflows are starting to match 2008 panic levels.
In April, U.S. equity mutual funds and ETFs saw outflows of $35.8 billion, according to TrimTabs. That’s the biggest move away from American stocks since October 2008. And the bearish tone is confirmed by the flows in the leveraged ETF space, where leveraged short ETFs saw an increase in assets of 4.6 percent, while leveraged long ETFs saw assets dip by 2.5 percent.
But Wait, There’s More! There is always a bull lurking around, ready to put a positive spin on the news above.
“I actually think it could be a positive for U.S. stocks, because the more people are fleeing equities, the less likely we are to have a crash instantaneously,” Boris Schlossberg of BK Asset Management. “It’s only when we have bubble-kind-of-conditions that leads to very sharp corrections in equities.”
If my mathematical and timing work is correct, the final leg of a secular 2000-2017 bear market is just around the corner. The only remaining question is, how fast will any such bear leg develop…….will it be a crash or a prolonged decline?
Both. If my work is accurate we should see a fairly rapid sell-off when the TIME is right. Considering today’s market setup and the overall bullish overtone, it will catch most investors by surprise. That will be followed by a quick bounce and a subsequent prolonged decline into the final bottom. In other words, those without this timing and mathematical breakdown stand zero chance of NOT losing money over the next few years.
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 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. May 4th, 2015 InvestWithAlex.com
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Capital Outflows And How Fast They Will Collapse The Market. Google