1/17/2019 – A positive day with the Dow Jones up 163 points (+0.67%) and the Nasdaq up 49 points (+0.71%) 

As we have been saying, the stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here. 

President Trump told you to buy stocks on December 25th, just a few hours before a market bottom was put in place on December 26th. To be exact, the president said “it’s a tremendous opportunity to buy. Really a great opportunity to buy”. It is our hope that Mr. Trump was reading our analysis projecting December 27th (+/- 1 trading day) bottom at 21,725.

All joking aside, I highly encourage you to read the following analysis in full…..

YIELD CURVE SPAGHETTI

Investors in short-term Treasuries and savings products are having a field day.

The US Treasury yield curve is having some bad-hair days. It is overall flat-ish, but within this description, it is steepening at the short end, sagging in the middle, and steepening at the long end. And all of it, from the one-month yield on up, is above the rate of inflation as measured by CPI, something we haven’t seen in that magnitude since the brief deflation scare in 2009.

I find the above interesting because most investors are completely ignoring the yield curve at the present moment. Since the inversion directly, and historically I might add, challenges their bullish narrative, it is automatically dismissed.

We have argued in the past that the inversion itself is not as important as the flattening of the yield curve and margin disruption. The inversion itself is the icing on the cake, so to speak, and is now clearly apparent in financial earnings.

Point being, the yield curve is screaming bloody murder and no one is listening. Will this be the first instance EVER where the inversion is ignored by the “Never Ending Bull Market”?

Luckily, you don’t have to guess. If you would like to find out what the stock market will do next, in both price and time, based on our mathematical and timing work, please Click Here 

Please Note: Our latest call was a direct hit. While everyone was panicking our work projected an important bottom on December 27th (+/- 1 trading day) on the Dow at 21,725 (+/- 50 points). An actual bottom was put in place on December 26th at 21,713. 

1/16/2019 – A positive day with the Dow Jones up 141 points (+0.59%) and the Nasdaq up 10 points (+0.15%) 

As we have been saying, the stock market remains at an incredibly important juncture. Things are about to accelerate in an unexpected way. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here. 

Bullish sentiment is back with the vengeance. This is just a small sample of what MarketWatch looks like today. Most other financial portals we follow look very similar….

• Head of world’s largest asset manager says stock market has hit a bottom — but this would make it surge
• These beaten-down stocks are expected to roar back in 2019
• If Wall Street busts higher again, this stock sector is a no-brainer
• Why retirees shouldn’t fear a bear market

Oh, My……

Traditional sentiment indicators tend to support this notion as most find themselves at their pre sell-off levels.

Yet, nothing has changed. If anything, the fundamental backdrop continues to deteriorate. The debt is still surging, earning estimates are collapsing, the yield curve is still inverted, the stock market is still incredibly overpriced, trade war is still boiling over, Trump is still acting crazy, etc……

Yet, no one is pausing to consider the other alternative. What if the late 2018 sell-off was just a warning shot of what is to come?

Well, was it???

Luckily, you don’t have to guess. If you would like to find out what the stock market will do next, in both price and time, based on our mathematical and timing work, please Click Here 

Please Note: Our latest call was a direct hit. While everyone was panicking our work projected an important bottom on December 27th (+/- 1 trading day) on the Dow at 21,725 (+/- 50 points). An actual bottom was put in place on December 26th at 21,713. 

As Americans we have to start asking some serious questions. For instance, at what points should these scum of the Earth reporters be dragged outside and shot like dogs? At the very least, at what point do we send them to a gulag in the mountains of Montana? Make no mistake, what they are doing is borderline treasonous!!!

Here are two very good takes on the subject matter.

The New York Times Smears the President

and

1/15/2019 – A positive day with the Dow Jones up 155 points (+0.65%) and the Nasdaq up 118 points (+1.71%)

As we have been saying for some time, the stock market finds itself at an incredibly important juncture. Things are about to move. If you would like to find out what happens next, based on our timing and mathematical work, in both price and time, please Click Here

Here is an interesting thought. Even the very few bulls who acknowledge the possibility of a major correction, might be underestimating its true potential. For instance….

Would you be prepared if the Dow Jones Industrial Average were to fall 5,700 points?

To those who have not been investing for a long time, the prospect of the Dow Jones Industrial Average falling 5,700 points in one day may seem ridiculous. But is it?

On Black Monday, 31 years from last Friday, the Dow Jones Industrial AverageDJIA, -0.50% fell about 23%. If the same percentage drop were to happen today, it would be about 5,700 points. I lost millions that day, and so did many others. Of course, today is not 1987.

Some of the most dangerous words in investing are “this time it’s different.” Basic human emotions of greed and fear that drive the markets do not change. Let’s explore this issue with two charts.

And while the author concentrates on a one day crash, the same line of thinking applies on the longer time frame. In other words, BTFD!!!

Allow me to challenge that line of thinking very quickly. 

Shiller’s Adjusted S&P P/E Ratio is about 29 today with a mean of 16. For the S&P to reach its mean valuation it would have to fall 50%…..today. And we are not even talking about overshooting to the downside.

But it gets worst. The S&P earnings are at about 120 today. When a recession hits (not if) they will very likely slide to at least 70, if not much worse. Some analyst are already talking about it today.

When we combine these two valuation metrics, it is not out of the question for the market to slide 70-80% in order to get back to its mean.

So, instead of trying to figure out what you will do when the Dow corrects 10%, you might start wondering why the hell are you fully invested in arguably the biggest stock market bubble of all time.

Luckily, you don’t have to guess. If you would like to find out what the stock market will do next, in both price and time, based on our mathematical and timing work, please Click Here 

Please Note: Our latest call was a direct hit. While everyone was panicking our work projected an important bottom on December 27th (+/- 1 trading day) on the Dow at 21,725 (+/- 50 points). An actual bottom was put in place on December 26th at 21,713.