Investment Grin Of The Day Google
No Big Bang For The Big Bang Theory
At least intuitively, I was always questioning the big bang theory. It just doesn’t make any sense to me. Here is a good benchmark. As above, so below. If big bang was the origin of our universe we should see smaller “big bangs” throughout our universe and various dimensions. Including in the formation of matter. We don’t and that makes the big bang theory a bust. Again, in my eyes.
We now have a much better approach to the subject matter and to be honest, it makes a lot more sense. No Big Bang? Quantum equation predicts universe has no beginning While hard for the human mind to comprehend, the universe has no beginning and no end. It is simply infinite. Breathing in (contracting) and out (expanding) as a human being would. Everything in nature is cyclical and it would only make sense that our universe is as well.
What does it have to do with the stock market?
A lot. In order to understand the stock market and how it truly works we have to understand the underlying foundation of our universe/reality. For instance, the stock market is a multi-dimensional entity. Not just a two dimensional line represented on the chart by price and time. The stock market moves in 3 dimensional volume with TIME acting as a 4th dimension. With DNA sequencing governing the entire process. That is to say, just like the universe, the stock market is a much more complex entity that requires further study.
The Shocking Truth Behind Today’s Market Psychology
2/9/2015 – A down day with the Dow Jones down 95 points (-0.53%) and the Nasdaq down 18 points (-0.39%).
The volatility is certainly back as the market continues to drive both bulls and bears up the wall. Over the last 25 trading days, we had not one, not two, but six massive moves of 600-1,000 points on the Dow.
Why is this important?
This becomes incredibly important when we begin to consider market psychology. Think about it in the following fashion. At this juncture bulls are incredibly emboldened. Every sell off over the last few months and years has been recovered in record time as the market keeps pushing higher. At least to the bull this market cannot do wrong and every declined is viewed as a buying opportunity. In other words, the bulls are completely unconcerned with today’s trading range or any possibility of a large sell-off.
The situation is completely reversed for the bears. The second remaining bears get excited about a decline the market tends to completely annihilate them. Just as we saw during the 900+ point rally last week. Forcing most bears to be too afraid to initiate a short position.
So?
Well, this sort of a psychological setup can only play out in the following fashion……99% of bulls will be trapped when the market has a significant breakdown and 99% of bears will fail to initiate a profitable short position. Or just as it should be.
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. February 9th, 2015 InvestWithAlex.com
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Insiders Unload Facebook (FB), Should You?
Here is why you should consider not only unloading Facebook (FB), but also going short.
- Insiders are selling massive amounts of stock. For instance, Facebook saw a gigantic insider sell trade this week. Silicon Valley legend Marc Andreessen, who was a very early investor in the stock, felt it was time to sell, and he really sold: 853,994 shares of the social media giant’s stocks at $77.38 apiece.
- The stock/company is speculatively overpriced.
- The stock is sitting at key technical levels. Should it break below $70 a share, there isn’t that much support until it falls back to $25. A real possibility as per point #4.
- An upcoming bear market of 2014/15-2017. Click Here.
Considering all of the above, it would make sense to approach this stock with a lot of caution. Better yet, consider short selling the stock. If a bear market does develop, a haircut of 50% or more over the next 2 years is not only possible, it is highly probable.
Investment Wisdom Of The Day
“Acknowledge the complexity of the world and resist the impression that you easily understand it. People are too quick to accept conventional wisdom, because it sounds basically true and it tends to be reinforced by both their peers and opinion leaders, many of whome have never looked at whether the facts support the received wisdom. It’s a basic fact of life that many things “everybody knows” turn out to be wrong.”
― Jim Rogers
Investment Wisdom Of The Day
What You Ought To Know About The Baltic Dry Index Crashing.
I am scratching my head here (not really). According to most people in the mainstream, political and financial media the US Economy is on fire. At the same time, despite the appearance of this debt driven economic miracle happening in front of our eyes, at least the Baltic Dry Index (the index of global shipping costs) is not buying it.
The index is down 75% in a little over a year and is now hitting levels unseen since 1986. In other words, if this does not suggest a massive global slow down while piercing the bubble of “perceived” economic prosperity, I don’t know what will.
Need more evidence? Fine, how about this. In their biggest drop since May of 2009, Chinese imports have collapsed 19.9% year-over-year in January, missing expectations of a modest 3.2% increase. Their worst miss since the peak of the financial crisis in 2008. So, if the US Economy is so great, why is global trade collapsing? I don’t think it takes a genius to figure it out.
What You Ought To Know About The Baltic Dry Index Crashing. Google
Two Hedge Fund Managers Discuss The Stock Market, Currencies, Commodities & Investment Ideas – Weekly Podcast
ALL NEW & FRESH: February 7th, 2015: We have a great show for you this week. Hedge fund managers Matthew Demeter and Alex Dvorkin discuss the following topics….
- What the stock market is doing and what we expect to happen over the next few weeks.
- COT Report and what the big guys are buying. Listen to make sure you are not on the wrong side of the trade.
- Swiss Frank, Australian Dollar, Interest Rates, Gold/Silver, Oil, Bond Yields, Copper and what we expect to happen in these markets.
- A multitude of great investment ideas and various tops/bottoms that can make you a ton of money.
- And of course, much…..much more.
Don’t miss this one and join us again next Saturday.
Listen to the podcast by clicking on the player above. If you prefer iTunes, please Click Here
Why Some Very Smart Investors Are Worried About This Market
2/6/2015 – A down day with the Dow Jones down 62 points (-0.34%) and the Nasdaq down 20 points (-0.43%).
It was a big week for the overall market. A near collapse turned into a massive rally and the bulls are, once again, out in force. With that in mind, a number of important red flags remain. We have talked about some of them in Thursday’s update. Here are some warning signs that other “smart” investors are seeing.
John Bogle: The Stock Market Is Ignoring Big Risks
John Bogle, founder of the Vanguard group, spots quite a few risks.
- The market is nervous.
- Numerous financial, economic and macro/war risks.
- We can easily see a 25-30% correction.
- Keep buying.
The market is ought to be nervous. It has been close to 6 years since the last real bear market correction ended on March 6th, 2009. And as I so often suggest, bull market runs don’t typically last for more than 5 to 5.5 years. It’s quite strange, but most markets have not moved very much since July 17th, 2014 top (5.5 years). An ominous sign or just another data point to ignore? Click Here to find out.
David Stockman: Didn’t Anyone Notice US Company Profits Are Falling, Not Rising?
The stock market is not cheap. On the contrary, today’s valuation levels are some of highest in history. I have beaten this point to death over the last year. David Stockman tends to agree.
The huge valuation gains in stocks during the current bull market have nothing to do with an honest marketplace, and the cheering on Wall Street is bound to be replaced by tears, according David Stockman, White House budget chief during the Reagan administration.
Stockman estimates fourth-quarter S&P 500 earnings are actually down 5 percent from the year-ago period, but there has been little mention of that fact in media coverage.
“That’s because the talking heads invariably reference ‘adjusted’ or ‘ex-items’ earnings, which, almost by definition, exclude charges for every imaginable business mistake and bonehead executive action — such as soured M&A [merger and acquisition] deals and ‘restructuring’ expense — that could possibly cause earnings to go down.
I couldn’t have said it better myself. And since REAL earnings are going down, corporates are guiding down and buybacks are slowing, at what point does this speculative P/E expansion snaps back? And what would that mean for the stock market….a 30-40-50% haircut? I think we are about to find out.
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. February 6th, 2015 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Why Some Very Smart Investors Are Worried About This Market Google
Why Twitter (TWTR) Should Go On Your “Stocks To Short” List
Twitter just reported earnings and most investors are the happy. Thus far, the stock is up 16%. With that in mind, here are the reasons investors should consider either getting out of this stock or going short.
- I don’t understand Twitter and its business model. And while millions of people love Twitter, I don’t see the company being around 5-10 years from now. That’s just my personal opinion.
- Connect the tops and bottoms on the chart above. Twitter’s chart is forming a perfect long-term wedge. It is highly probable TWTR will break below support at around $35 at some point later this year and head lower. Much lower.
- Short-term, TWTR just closed a massive up gap at around $48. Plus, it touched the wedge resistance. That is to say, it is highly probable that the stock will soon head lower to close the down gap opened today and to test the wedge support.
In conclusion, I believe Twitter should be put on your “Stocks To Short” watch list. Should a short-term downtrend develop here, a short position would make sense. Considering a bear market of 2015-2017, a break below $35 can result in a quick 50% gain on the short side.
Why Twitter (TWTR) Should Go On Your “Stocks To Short” List Google
