What’s Next……Flipping Cars For Profit?
Over the last couple of months a lot of hoopla has been made about surging US auto sales and its supposed positive impact on the overall US Economy. So much so that most market pundits believe that surging auto sales is just the first sign that the US Economy is about to catch fire.
Unfortunately, the reality is quite different. In a nutshell, sub prime auto loans, reminiscent of the sub prime mortgages circa 2000-2007 is what is driving these sales highers. The Wall Street securitization machine has made it so easy that a jobless bum with 5 DUIs can probably get a brand spanking new set of wheels at ZERO down.
Issuance of securities backed by the debt has reached $10 billion this year, up 5 percent from the pace in 2013 through May 30, according to Wells Fargo. Total sales of $17.6 billion last year were more than double the $8 billion sold in 2010, when securitized-debt markets started to revive after all but shutting down amid the 2008 financial crisis.
Yet, we all know how this story ends. If you don’t……the stock market initiates a 2014-2017 bear market (as per our mathematical/timing work), liquidity dries up, auto loans collapse, the US Economy falls into a severe recession, people lose jobs, vehicle repossessions surge and auto sales collapse. To bad.
If you could only fix up and flip these cars, this bubble would go on a little bit longer.
Dow Transport Breaks Down. Massive Market Correction Coming? Scary
The Dow Theory buffs are starting to get fairly uncomfortable right about now. These two charts will show you why. The Dow Jones Transportation index broke down below its recent low, suggesting further downside. In addition to that, the Baltic Dry index, which is already down more than 50% since the beginning of the year is a few clicks away from resuming its sell off. Is this the precursor before a massive bear market starts? I think we are about to find out.
Dow Transport Breaks Down. Massive Market Correction Coming? Scary Google
Daily Stock Market Update. June 12th, 2014. InvestWithAlex.com
A substantial down day with the Dow Jones down 109 points (-0.65%) and the Nasdaq down 34 points (-0.79%).
The Dow started the day with a small gap. That is in addition to a large gap on June 11. Both will have to be closed before any sustained downside can develop. Suggesting an upcoming bounce.
Buy the dip mentality continues to be well entrenched as most market pundits continue to suggest that investor use this slide as a buying opportunity. Given today’s technical setup/trend I would agree with them on most occasions……but not today. Buying at today’s levels will lead to a lot of pain and suffering for anyone who dares to do just that. It might not be tomorrow, but rest assured that it’s coming soon.
This is further confirmed by my mathematical and timing work. Again, my work shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: 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. June 12th, 2014 InvestWithAlex.com
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Daily Stock Market Update. June 12th, 2014. InvestWithAlex.com Google
Investment Wisdom Of The Day
Warning: Bullish Sentiment Pushing Extreme Levels.
I might be beating a dead horse here, but I keep hearing that there are just too many bears out there for this market to fall. While it’s a good investment thesis, the reality is quite different.
According to the Lindsey Group’s Peter Boockvar, bullish sentiment is at levels even higher than they were in December 2013, October 2007 and August 1987, and we all know how that ended. Using data from a survey conducted by Investors Intelligence, Boockvar says the number of bulls exceeds the number of bears by a near record margin. “Bulls are now just .3 [points] from a record high in December ’04 and compares with 61.6 in December ’13, 62.0 in October ’07 and 60.8 in August ’87,” Boockvar wrote in a morning note.
And there you have it. Every single time we have been here before, a huge sell off followed. While these sentiment readings are great at ascertaining where we are in the overall composition of the stock market, they are very poor at predicting timing.
Luckily for you, timing is my specialty. My mathematical and timing work is very clear in this. It shows a severe bear market between 2014-2017. 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 exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE
US Suffers A Stunning Defeat In Iraq. Al Qaida About To Take Baghdad
After a decade long war, hundreds of billions of dollars wasted, tens of thousands of American causalities (killed or wounded) and close to a million civilian deaths……the Iraq war is now lost. Well, that is unless the US wants to re-invade again. Iraq Sunni militant group vows to march on Baghdad
The outcome?
Al Quaida is ridding in style in American Humvees, stealing over $400 Million of the US taxpayers money (so far) and taking over American made weapons. Iraq is now 10 times worst than it was under Sadam and Syria/Iraq are now failed states run by nutcases and terrorist who will use it to stage future terror attacks on the US. What’s worst, this was predicted by a number of people even before the war started, yet ignored by Washington and the military industrial complex. Give it a few years and you will see this happen in Afghanistan as well.
Perhaps it’s time for the American people to start asking some serious questions and stop threatening every other nation with either sanctions or force. Than again, I think the American Idol is on tonight….so maybe next week.
US Suffers A Stunning Defeat In Iraq. Al Qaida About To Take Baghdad Google
Daily Stock Market Update. June 11th, 2014. InvestWithAlex.com
A down day with the Dow Jones down 102 points (-0.60%) and the Nasdaq down 6 points (-0.14%)
Most indices opened up with a gap down, suggesting a near term bounce. With that said, don’t get too complacent here. The massive bear market of 2014-2017 is just around the corner. Make no mistake about it.
I keep hearing two lines of thought. One suggesting that this bull market is in a dangerous territory” followed by a big BUT “there are just too many bears out there”.
Well, I think it dangerous to suggest that the market is in a “dangerous territory”. A more accurate description would be comparing today’s stock market and valuation levels to a “40ft container full of TNT with a lit fuse disappearing inside of it”.
In terms of “too many bears” the chart below speaks for itself. Most bears have been squeezed to death as the fear/bearish index falls below 2007/2000 levels. I wonder what happens next?
This is further confirmed by my mathematical and timing work. Again, my work shows a severe bear market between 2014-2017. 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 which way it will break and when, please CLICK HERE
(***Please Note: 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. June 11th, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Daily Stock Market Update. June 11th, 2014. InvestWithAlex.com Google
Goldman Sachs Is Done With Building Out Their Short Position. You Know What Happens Next.
Oh Oh…….Did Goldman Sachs just complete their stock distribution (to retail investors) while building out a massive short position? Sure sounds that way. You know what happens next.
Goldman Sachs Is Done With Building Out Their Short Position. You Know What Happens Next. Google
