8/9/2018 – Another mixed day with the Dow Jones down 75 points (-0.29%) and the Nasdaq up 3 points (+0.04%)

Today’s market action was once again nearly ideal if we consider our overall forecast. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here

Now, let’s look at some scary charts……

We have argued for some time, based on numerous metrics, that today’s stock market is selling at its highest valuation level in history. Yes, going all the way back to May of 1790. The chart above presents us with yet another confirmation point of the same.

Having said that, you can nail this chart to a bull’s head and they will still argue that today’s market is undervalued and that FAANG stocks represent a wonderful buying opportunity.  Any more scary charts? I am glad you have asked.

In other words, while just TECH stocks were massively overpriced at 2000 top, today it is EVERYTHING BUBBLE. Perhaps that is the reason Warren Buffett is sitting on a massive cash pile while the rest of value investors are chasing “undervalued unicorns”. And if that wasn’t enough, there is this comparison……

Now, you don’t have to rely on the charts above to figure out what the stock market will do next. We have the exact answer you are looking for.  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. 

8/7/2018 – A positive day with the Dow Jones up 126 points (+0.50%) and the Nasdaq up 24 points (+0.31%) 

Something incredibly important happened on the Dow earlier in the day and no, we are not talking about Tesla.  If you would like to find out what the stock market will do next, in both price and time, please Click Here

We often talk about investor sentiment and how oversold/overbought the market is. And while no indicator is perfect, perhaps nothing tracks actual investor bullish/bearish sentiment better than the actual money, on the margin.

BLINKING RED BUBBLE LIGHT: Stock Market Investor Margin Debt Reaches New High

The world is standing at the edge of the financial abyss while most investors are entirely in the dark.  However, specific indicators suggest the market is one giant RED BLINKING LIGHT.  One of these indicators is the amount of margin debt held by investors.  What is quite surprising about the level of investor margin debt is that it has hit a new record high even though the market has sold off 2,500 points from its peak in February.

It seems as if investors no longer believe in market cycles or fundamentals. Instead, the Wall Street saying that “This time is different” has become permanently ingrained in the market psychology.  For example, it doesn’t seem to matter to the market that Amazon makes no money on its massive online retail business.  The only segment of Amazon’s business that made a decent profit last quarter was from its Cloud hosting services.

We have touched on this subject matter a few days ago. Some Scary Charts To Keep You Up At Night Over The Weekend. At that time we looked at this chart.

It is truly mind boggling to see how long and leveraged everyone is. When the market finally cracks, as it surely will, all of the red on the right hand side will act as jet fuel to the downside.

Luckily, our mathematical and timing work is clear in identifying exactly when that will happen. If you would like to find out what the stock market will do next, in both price and time, please Click Here

8/3/2018 – A positive day with the Dow Jones up 39 points (+0.16%) and the Nasdaq up 47 points (+0.66%) 

The overall stock market finds itself at incredibly important juncture. Will it break out or will it face the so called and dreaded double top formation. If you would like to find out what the stock market will do next, in both price and time, based on our timing and mathematical work, please Click Here

Elon Musk is finally cracking under enormous pressure of a giant Ponzi scheme known as Tesla (TSLA). A company that would be impossible without today’s monetary environment, stock market bubble and government handouts.

I hold no position in the stock (long or short), but crazy valuation aside, the bearish case for the company is very well known. Just Google “Bearish case for Tesla” and keep reading.

That is not the purpose of this writing. This is…..

Elon Musk: ‘Dang, turns out even Hitler was shorting Tesla stock’

Early Sunday, Musk tweeted a doctored scene from “Downfall,” a 2004 film about Adolf Hitler’s final days. In the actual clip, which has been parodied many times since its release, Hitler is yelling at his generals as Allied forces close in.

In the version posted by Musk, Hitler is a frantic fund manager who’s been caught on the wrong side of a Tesla trade. “If Tesla doesn’t go bankrupt soon, I’ll lose everything,” he says in one of the subtitles.

As for the short-sellers he so enjoys taunting, they were sitting on a paper loss of almost $2 billion after the spike, according to S3 Partners LLC, a company that has access to and tracks real-time short interest data.

Now, while Mr. Musk gloats in arguably a fraudulent earnings report Tesla Discloses Worst Quarterly Loss Ever, But Where Are the 17,000 Model 3 Cars it “Produced” But Didn’t “Deliver”? Where is the SEC?, some serious issues must be raised.

Chief among them being, the CEO of a highly overvalued and speculative company shouldn’t be making fun of well researched company shorts and/or attempting to crush them. He should let the market do it for him.

Instead, the story is always the same. Some egomaniac CEO pumped up on his own hubris starts believing his own BS and the rest, as they say, is history.

I don’t believe Pets.com CEO made fun of the short-sellers in early 2000, at least I don’t recall, but nearly everyone else did. From business leaders to professional money managers, all were lining up to make fun of the “stupid short sellers” that were about to get run over by the never ending bull market.

All of the above has to do with sentiment that is all too pervasive at the tops. Trust me, Mr. Musk wouldn’t be making fun of the short sellers if we were in a bear market. If I were him, I would worry about the massive gap ups his stock has left behind, including the one from last week.

Now, if you would like to find out what the stock market will do next, in both Price and Time, based on our timing and mathematical work, please Click Here