When it comes to mainstream financial media, it is nearly impossible to get an honest and/or bearish view of the market. The video below delivers both. Take a look as I would have to agree with the view expressed there. Definitely worth 2 minutes of your time.
If the video doesn’t play, please Click Here
5/7/2015 – A positive day with the Dow Jones up 83 points (+0.47%) and the Nasdaq up 26 points (+0.53%).
Over the last few months the stock market has been about as exciting as a day at the dentist. So much so that the Dow of today trades exactly where it was on November 21st, 2014. The NYSE is where it was in July of 2014. But do not despair, this period of low volatility will soon end.
Most investors believe that the stock market is random, volatile, and cannot be predicted. Nonsense. If anything, the market is exact. Once you understand how it works behind the scenes (The Secret Behind The Stock Market), exact calculations can be made.
That is precisely what the charts below show.
Here is one of my charts showing something similar, but much more accurate.
I cannot overstate how amazing this chart is. Just a few points.
To summarize, the combined move took 16 years and there was only 22 3-DV UNITS of variance between two sections. This variance over the 16 year period of time can be attributed to as little as 2 trading days and a few hundred points on the Dow. This example alone should put to rest all claims that the stock market is random and unpredictable. Once again, when we identify the exact structure of the stock market through using our 3-Dimensional analysis we can time the market with great precision.
For example, if we understand the structure above we know that the move between 2002 bottom and 2009 bottom will be identical in 3-DV UNITS of the move between 1994 bottom and 2002 bottom. Just by having this information alone one should be able to figure out the stock market with great precision. Further, once we have hit the 2007 top on the DOW, any analyst using this technique knows that the upcoming down move will be exactly 8,127 3-DV UNITS. (18283-10156=8,127)
That would mean that once the 2007 top is confirmed you would know exactly where the market would bottom. So, while everyone is freaking out in the late 2008 and early 2009 you are either shorting the market and making a lot of money or you are setting yourself up for the upcoming bull market that you know will start in March of 2009.
I hope this clearly illustrates how powerful this 3-Dimensional analysis can be. Also, please keep in mind that the example above is just a tiny sample of the information available to you once 3-Dimensional analysis is performed. Again, once the market structure is fully understood you would know not only where but WHEN the market would turn.
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 7th, 2015 InvestWithAlex.com
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The chart above is probably one of the most important charts in finance today. As you can see, the 10-Year Treasure Note is pushing against a fairly significant short-term resistance level at around 2.25%.
Should it break out, it is likely to reach at least 2.6%. Its long-term resistance level. This brings out a number of important questions. In fact, more questions than anyone can answer at this point. For instance,……
Only time and market action can answer the questions above. At least for now, I am sticking to my overall long-term forecast. The secondary bottom in yields of 1.4-1.5% is not yet in and we are on schedule to see it over the next 12-24 months. If the yields don’t turn around and resume their decline at today’s resistance levels, I fully expect 2.6% resistance line to stop any long-term advance.
I love science and mathematics. Yet, once you start digging deeper you soon come to a realization that our physical 3-dimensional reality doesn’t make sense. So much so that what is available to our human senses is just a small fraction of our true reality. In other words, human existence is nothing more than an advanced computer simulation. Leading physicists across the globe are starting to come to the same realization.
What does any of this have to do with the stock market?
Everything. Just as our human reality is nothing more than a shadow of higher dimensions, the 2-dimensional chart we all follow is just a shadow representation of true market moves. Here is how the stock market really works.
The markets being, at minimum, a 3-Dimensional phenomena, exactly like a large molecule rotating in space, in and out of the Z plane, with DNA coding sequences governing the entire process. Without understanding that the market is 3-D, twisting like a plant governed by the phyllotactic laws of dual number series and harmonic composition and decomposition, all measurements taken on a 2-D chart become misleading.
Mind blowing. By the way, human beings have the ability to jump to this higher dimension of reality through extensive meditation. Most traditions around the world call this “enlightenment”. In scientific terms, it is identical to electrons jumping between quantum levels. Once enough energy is accumulated within the human mind/body structure (through meditation), this quantum jump is automatically made.
Holographic Universe And The Secret Behind The Stock Market Google
5/6/2015 – Another down day with the Dow Jones down 85 points (-0.48%) and the Nasdaq down 20 points (-0.40%).
A massive and rather rapid stock market decline is coming later on this year. And while we won’t have a crash, considering the amount of margin debt out there, quite a few people will get wiped out. If you would like to find out exactly when this move will develop, to the day, please Click Here.
For now, most investors continue to play chicken with the FED. And they will pay dearly for it. I am not sure if the FED can be any more clear here. They WILL raise rates and soon. Plus, when even Janet Yellen suggests that stocks are too expensive….Fed’s Yellen says equity valuations high, warns of ‘potential dangers’…..well, you deserve to lose a lot of money if you maintain a net bullish position going forward.
At the same time, maybe the bulls are right. According to quite a few market pundits, the party in the equity markets hasn’t even started yet. Case and point.
I cannot stop shaking my head in disbelief. To save you some time, here is what was said:
“This is an extraordinary buying opportunity, buy any and all dips, with zero interest rates the price of equities could be infinite, this bull market will continue, valuation don’t matter anymore, etc….”
Valuations don’t matter……infinite run ups are just around the corner …..buy now. That sounds familiar. If I didn’t hear the exact same thing at 2007 and 2000 tops, well, call me a fool.
Again, the underlying assumption in both cases is the same. We are in such a unique monetary easing environment that there is no way in hell the markets can go down. Maybe so, but here is the major point that most investors miss. Today’s market environment becomes a matter of psychological setup as opposed to a fundamental background.
When everyone and their day trading grandmother believe that we are in such a bullish environment, the market is getting ready to reverse. Why? Well, it’s rather simple, everyone has already bought into the long side of the market. Contrary to the opinion of the market pundits above, I would argue that the only opportunity here is on the short side (or in cash).
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 6th, 2015 InvestWithAlex.com
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As The Dow Goes Negative For The Year, The Worst Is Yet To Come Google
Societe Generale’s notorious bear, Albert Edwards, thinks the US Economy is about to implode and the FED will flood the market with another round of QE. More Fed Stimulus Coming in Inflationary Push
The first quarter U.S. GDP data was a major disappointment to the market as business investment declined due to the intensifying U.S. profits recession. Only the biggest inventory build in history stopped the economy subsiding into a recessionary quagmire. Sales are declining on a year-over-year basis, but we are assured this is due to the cold weather. But if it is not, and sales do not surge in coming months, then the economy is heading into recession. GDP would have fallen 2.5 percent since December without inventory growth”, Edwards said.
I couldn’t agree more. So much so that I continue to maintain that we are in a stealth recessionary mode. Meaning, take away zero interest rates, QE and asset speculation, and you will find the US Economy in a full blown recession.
I would also agree that the FED will flood the market with another round of QE and cut interest rates (after they raise it). With that in mind, it is all about timing at this stage. Before they can do any of the above three things must happen. 1. They must raise interest rates. 2. The stock market must decline and 3. The US Economy must slip into an official recession. For now, they reload.
Why The FED Will Raise Rates Before The Next Round Of QE Google
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
Stan Druckenmiller made over $1 Billion by betting against the bank of England with George Soros in the early 1990’s. In other words, when he talks, you better pay attention. And what does he have to say today? The exact same thing I have been yapping on this blog for quite a while now.
I know it’s so tempting to go ahead and make investments and it looks good for today,” the retired founder of Duquense Capital Management said, “but when this thing ends, because we’ve had speculation, we’ve had money building up four to six years in terms of a risk pattern, I think it could end very badly.
There is nothing more deflationary than creating a phony asset bubble, having a bunch of investors plow into it and then having it pop.
I feel more like it was in ’04 when every bone in my body said this is a bad risk/reward, but I can’t figure out how it’s going to end. I just know it’s going to end badly, and a year and a half later we figure out it was housing and subprime. I feel the same way now.
When you have zero money for so long, the marginal benefits you get through consumption greatly diminish, but there’s one thing that doesn’t diminish, which is unintended consequences.
When this thing ends, because we’ve had speculation, we’ve had money building up for four to six years, in terms of a risk pattern, I think it could end very badly.
Then again, feel free to listen to your Charles Schwab financial adviser and go long on margin.
Bet Against The FED: The Only Way To Generate Returns Moving Forward Google
