1/15/2016 – A big down day with the Dow Jones down 392 points (-2.39%) and the Nasdaq down 127 points (-2.74%)
Quite a bit of ground to follow as we head into the weekend.
With the FED’s James Bullard trying everything to prop up the markets, Fed’s Bullard Shows Signs of Rate Hike Waffling, a certain forecast published here a few months ago comes to mind.
To be exact: The FED’s End Game Is Finally Unveiled. Here is a quick summary of what was said.
Excuse my language, but the FED continues to BS the market. And as far as I can tell, the FED is attempting to maintain the market within a certain range. At the same time, it is now crystal clear what their actual game plan is. It goes something like this…..
- Can’t raise or won’t raise. Today’s economy or financial markets won’t be able to digest any rate increases at this juncture. Period. As talked about on this blog so many times before. Why The FED Will Not Raise Interest Rates in any meaningful way. If the FED members have even an ounce of intelligence, and I believe they do, they realize the same.
- If the market declines, issue a “Dovish” statement. Bring it up.
- If the market recovers, issue a “Hawkish” statement. As they did today. Remember, they don’t want things too overheated.
- Rinse and repeat while praying the market and/or the US Economy won’t implode on their own.
That about covers it. There is only one fatal flaw with the plan above. It only works until it doesn’t. It only works until the FED has any credibility left. The problem is, more and more people are beginning to realize all of the above.
Now, open any financial media outlet today and you will find it filled with bearish gloom and doom. And when even prominent bulls start calling for a market decline, some sort of a bottom shouldn’t be far away. I present to you…..
“We’re in the midst of a real market decline, bordering on a bear market,” he told “ Squawk Box” on CNBC. “But the speed at which this is happening is just a reassessment of the risk, reassessment of where we’re going.”
Fair enough and Mr. Fink can very well be right. At least long-term. But investors can’t forget that markets do bounce and/or stage rallies from time to time. In other words, today’s excessive bearishness might represent an opportunity to “buy the dip”. Or maybe NOT, as markets tend to crash in oversold conditions. The exact conditions we are witnessing today.
But don’t worry, Mr. Cramer is here to teach you how to perfectly pick out bottoms. Cramer: How I knew to buy before the big rebound Thursday’s bottom that is and right before Friday’s beat down. I can’t help but wonder if Mr. Cramer sold or went short right at the top as well.
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 2015-2017 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.January 15th, 2016 InvestWithAlex.com
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