10/24/2014 – Another up day with the Dow Jones up 128 points (+0.77%) and the Nasdaq up 31 points (+0.69%)
When the market hit bottom on October 15th, I told my subscribers to cover their short positions and to go long as soon as the reversal confirmation was obtained. That confirmation arrived the following day and as you can imagine we have benefited greatly on the long side. Yet, the main question remains…….what’s next…….will the market crash or will it bounce? You can find the exact answer by CLICKING HERE. For now, lets discuss the case for a crash.
The Case For A Crash……
Over the last couple of months a lot of hoopla has been made about comparing 1982-1987 bull market (including the 1987 crash) to today’s stock market environment. Below is one of such charts for your consideration.
One of the primary things that people miss about these comparisons is the time frame associated with such moves. For instance, the bull market between August 1982 bottom and August 1987 top lasted exactly 5 years. The bull market between March 6th, 2009 and today has been in existence for 5 years and 4 months. Making the comparison between 1987 top and 2014 top obsolete.
Great news…..right? Not really.
Today’s market matches another pattern and this pattern makes 1987 crash look like child’s play. Over the last 224 years (since the market first started trading in 1790) the market exhibited only ONE 5-Year uninterrupted bull market cycle that extended for 5 years and 4 months. The longest bull market cycle ever (when counted as a separate unit). That ONE pattern led right into the 1929 stock market crash.
To be more specific, the Dow set a secondary bottom in early May of 1924 and then went on a rampage bull market that terminated on September 3rd, 1929 (exact top). Again, exactly 5 years and 4 months later. Thereafter, the Dow distributed for 6 weeks before initiating its crash sequence on October 24, 1929. By November 13th, 1929 the Dow was down 49%. A devastating collapse.
Now, I know what you are thinking. “People were kind of dumb back then. The market was clearly in a speculative bubble and even a monkey with half a brain could have seen the 1929 crash coming from a mile away”. WRONG. Human nature never changes. Case and point, I present to you probably the smartest and the wealthiest businessman who ever lived, Mr. John D. Rockeffeller (his net worth was over $200 Billion in today’s money).
October 30, 1929: The Dow Jones Industrial Average has one of its best days ever, rocketing up 29 points, or 12.3%, to 258 as John D. Rockefeller, Sr. announces: “There is nothing in the business situation to warrant the destruction of values that has taken place on the exchanges during the past week. My son and I have for some days been purchasing sound common stocks.” The Dow goes on to lose 84.1% more of its value before bottoming out on July 8, 1932.
I think his quote speaks for itself. Just as in 1929, 99.99% of people today are not aware of where we are. Back to 2014. I have already beaten the fundamental/economic/market horse and today’s stock market overvaluation/speculation levels to death. Both, in my daily blog and in my weekly updates. If you need more information, please revisit my comprehensive report The Bear Market of 2014-2017 Is Starting. Why, How & When
With that said, my precise mathematical and timing analysis works on a completely different level. Instead of anticipating what will happen based on fundamental analysis or economic data, my work tells you exactly what will happen and most importantly, WHEN. Making technical, fundamental and economic analysis obsolete.
So, will we have a 1929 style crash over the next few months? Unfortunately, such information is only available to my subscribers. Including the exact date of the 2014 market top and what will happen thereafter.
Think about it this way. You really have two options.
- You Decide To Ignore This Warning: If the 1929 type of a crash does occur, you will lose 50% of your net worth in a matter of days. By that point, it will be too late. It won’t be too late to jump out of the window, but it will be too late to do anything about it. And for what, to save $49 a month?
- If You Are To Check Out My Member Section: If the 1929 type of a crash does occur you will be able to
1. Avoid the crash, preserve your capital and buy stocks at giveaway prices.
2. Make a fortune on the short side (if you trade on the short side).
So, at the risk of sounding too salesy, I am beating this drum as hard as I can in order to warn as many people as I can. This newsletter service is not my primary source of income (not even close) and it won’t make one bit of a difference to me if you sign up. Again, I am just trying to warn as many people as I can. So, what are you waiting for? Reserve your spot (limited space and we only have a few spots left for October) for your FREE 14-day trial today and check out our forecast. I cannot stress how incredibly important this update is. Trust me; the grandchildren of your grandchildren will thank me.
Important Announcement: It is highly probable that I will double the price of my service over the next 90-120 days while getting rid of the monthly subscription option. While this change does not impact existing subscribers (they are locked in for life), all new subscribers will have to pay at least $599/year. This change will happen fairly soon. In other words, if you have ever considered a subscription, the time to get in is NOW.
MATHEMATICAL & TIMING ANALYSIS:
(*** Please Note: The information within this section is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more and to reserve your spot.Don’t forget, we have a risk free 14-day trial).
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