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Daily Stock Market Update. May 29th, 2014. InvestWithAlex.com

daily chart May 29 2014

An up day with the Dow Jones up 65 points (+0.39%) and the the Nasdaq up 23 points (+0.54%). 

Secular bear markets typically end where they have started (ex: 1897-1914, 1929-1949, 1966-1982 and  2000-2017).  What’s interesting is that there is a perfect alternating bull/bear cycle that lasts 16-18 years going all the way back to May 17th of 1790 (first official day of trading in the US).

I am bringing this up because A LOT of people have assumed that a brand new secular bull market has started on March 6th, 2009. What they don’t realize is that we’ve never had a bear market last only 9 years. NEVER and it’s not going to happen now.  Plus, despite the “New Bull Market”, here is the reality from the 2000 top (14 years later)….

  • DOW: +44% (2.65% annualized gain….should have bought bonds). 
  • S&P: +38% (2.35% annualized gain….should have bought bonds). 
  • NASDAQ: -16% (what gain?)

By the time the bear market of 2014-2017 completes itself, the green above will turn red. Proving, once again, that there is a beautiful internal mathematical structure to the market that cannot be altered.

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 exactly when the bear market will start (to the day) and its subsequent 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. May 29th, 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. May 29th, 2014. InvestWithAlex.com  Google

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Are Bond Vigilantes Buying Bonds?

Yield Curve as of 2014-05-26

As yields continue to decline and as the yield curve continues to compress, BusinessWeek asks “Where Are The Bond Vigilantes“

In fact, Bloomberg News reports, there is “deepening concern among bond investors that tepid wage growth and a lack of inflation will persist for years to come.” The story quotes Margaret Kerins, the Chicago-based head of fixed-income strategy at Bank of Montreal: “Potential growth is a huge determinant of that long-term rate and most people are buying into the idea of lower potential growth.”

I think this is the most significant story no one is talking about. While most people believe yields are heading lower due to the lack of inflation, slower growth or simply because the bond market has gone crazy, I do not share in their optimism.

 Here is why the yields are going down and the yield curve is compressing. 

  1. The bond market is starting to see a severe recession and a bear market within the US Economy. Our mathematical and timing work confirms the same. Showing a significant recession and a bear market between 2014-2017. 
  2. Typically, 30-year bear markets in yield do not end in a V shape form. When such long moves complete they often set a secondary bottom (at least). This fits well within our overall economic forecast as we anticipate yields to set a secondary bottom over the next 2-3 years. In 2016 to be exact.
  3. There are a number of open gaps leading all the way down to 1.5-1.6% on a 10-Year Note. Again, it is highly probable yields will go there over the next 2-3 years.

When we put all of this together, it becomes evident that the US Economy and the US Stock Market are in real trouble going forward.

Z31

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As Gold Continues To Collapse, What’s Next?

gold investwithalex Gold is not doing very well. Down $41 or (-3.17%) over the last 30 days. More importantly, it broke an important short-term support level and is likely heading to it’s next strong support level located around $1,200.

What’s going on?  

Nothing, Gold is simply tracing out it’s exact structural pattern. As I have mentioned before, Gold will do very well over the next few years, but in order to make money your entry points must be timed perfectly. Simply put, the time to buy Gold is not here……just yet.

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

All you have to do now is wait for Gold to break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.    

z32

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Edward Snowden: An American Patriot or A Traitor?

If you are an American with an IQ of over 100 you should take an hour of your time and watch Brian Williams’s interview with Edward Snowden. I am just happy that the US media is no longer buying the Obama Administration BS and are going after the truth. Start with the video below and come to your own conclusions.

As for me, it’s very easy. Would you believe a very intelligent guy who had destroyed his life in order to expose that the US Government spies on every citizen while amassing a giant database of what and who you are (so you can be controlled or dealt with if need be) -OR- would you believe a Government that starts wars, spies on you, transfers wealth to the rich, creates financial bubbles and otherwise lies on most issues?

In the day and age where you can be labeled a “Terrorist” by simply disagreeing with the ones in power, your answer will determine the future. Will we take our freedoms back or will the US becomes a country where the democracy and freedom is nothing but a distant memory?  What are your thoughts? Share them in the comment section. 

Z30

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Daily Stock Market Update. May 28th, 2014. InvestWithAlex.com

30-Yield Vs Stock Market InvestWithAlex

A down day with the Dow Jones down 42 points (-0.25%) and the Nasdaq down -12 points (0.28%) 

I am looking at this market and I am at awe. Literally. And I am not even kidding you. My mouth is wide open in disbelief. Very rarely does the stock market present us with an opportunity to see so many divergences, so much speculation and so much animal instinct at any one time. I can only remember 2000 and 2007 tops display identical behavior.

It is literally like watching a lit fuse disappear into a container load of TNT.  

Perhaps nothing is screaming louder than the flattening yield curve, collapsing interest rates and it’s massive divergence with the stock market.  The 10-Year Note is at 2.43% and down 3.2% today alone. The chart above (courtesy of ZeroHedge) speaks for itself. Basically, either the stock market is about to implode or the bond market (considered by many to be more intelligent) has lost its mind.

Now, a lot of investors are betting that the bond market has gone nuts as they continue speculating in the stock market on margin (highest margin level since 2000). Who is right here? Will the market surge to set a blow off top or will it collapse. I think we are about to find out.

From my vantage point and based on my mathematical/timing work, the answer is undeniable. 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 exactly when the bear market will start (to the day) and its subsequent 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. May 28th, 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. May 28th, 2014. InvestWithAlex.com Google

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Shocking News: Real Estate Market Continues To Deteriorate.

A number of important articles on real estate. 

To quickly summarize, you got to be freaking rich to be able to afford a house nowdays, Janet Yellen couldn’t cure her own headache even if she tried and young people can either afford to jump on a “property ladder” with an overpriced shit box or start paying off their student debt.

mortgage-debt-wages

Listen, today’s housing market is no different from the stock market. What was once a place to live and accumulate equity/savings, is now nothing more than Tesla Motors Inc (TSLA) high growth and highly speculative stock selling at 13 times revenue.

With the amount of speculation and debt out there, don’t have any illusions that the real estate market will behave in a different fashion. Expect the real estate market to crash……just as the stock market will as soon as this credit driven speculation party ends. Just as it did in 2007.

Need more information? Real Estate Collapse 2.0 Why, How & When

Z31

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Meditation: The New Secret Weapon Of Elite Wall Street Traders?

meditation investwithalexAbsolutely. A great article on the subject matter from Bloomberg and I highly recommend that everyone reads it. To Make a Killing on Wall Street, Start Meditating. 

I have been seriously meditating for over 7 years now and I swear by it. Most people don’t have the slightest idea of how stressful it is to be involved in the money management/trading business. In fact, I continue to maintain that it is one of the most challenging professions out there. And while some people turn to drugs, alcohol, partying, hookers, gambling and other destructive/compulsive behaviors, for me meditation is the only healthy (and free) option.

Listen, most people will gain a competitive advantage on Wall Street NOT through superior knowledge…..you can teach a monkey to read a balance sheet or a chart…..but through their psychological make up and patience. In other words, your brain can either be your best friend or your worst enemy. Simply put, meditation, over time, turns your brain/being into a powerful weapon when it comes to trading and/or investing.

Plus, there is a number of additional benefits. Wisdom and a potential enlightenment immediately come to mind. As a quick note, don’t follow anyone or get a “Guru”. Just close your eyes and destroy your mind. It’s the best drug out there. I highly recommend it.

z33

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How Long Before Corporate America Destroys The NSA?

ibm vs obamaThe sooner the better. Yesterday, China’s Government started instructing Chinese banks and other financial institutions to replace US made IMB servers with their Chinese made counterparts due to the fears of spying. IBM Faces Further Trouble in China. Rightfully so….

How long before other countries and businesses follow? Not very long.  No one wants to be spied on and that is exactly what you are getting when you buy any sort of technology from the US today. Courtesy of the Obama Administration and the NSA.

Basically, it won’t be long before American corporation will see billions in revenue vanish into thin air. It’s already happening. I truly hope that the backlash against the US Government from these corporate interest is so strong that it utterly guts or destroys the NSA. While that might be wishful thinking on my part, this is the only was the NSA monster can be destroyed at this juncture as most American continue to be more interested in who wins the American Idol as opposed to their freedoms or privacy.

What do you guys think? Would love to hear your comments. 

Z30