5/19/2015 – A mixed day with the Dow Jones up 14 points (+0.08%) and the Nasdaq down 9 points (-0.19%)
Not many people know this, but the American stock market started trading on May 19th, 1790. Exactly 225 years ago. Back then there was no Dow Jones and from what I have read, people traded stocks over a barrel. Literally. Although I have a chart going all the way back to the point of origin. An important thing to have if you wish to figure out the rate of vibration in any given market.
And while we live in a totally different world now, one primary driver remains fully intact. Human psychology. Regardless of what the FED does, we will always have cycles of boom and bust. If anything, the FED magnifies them.
Today is a perfect example of just that. The US Economic and macro data is collapsing, corporate earnings are decelerating and the stock market is sitting at an all time high. Margin debt is breaking out, people are not hedging and bullish sentiment is as high as it was at 2000 and 2007 tops.
- Thomas Lee: Wall Street’s record run far from over
- A stock market top is likely near as investors fail to hedge
Sounds like a perfect recipe for a disaster to me. Most people I talk to can’t even fathom a 10% correction here, let alone a full blown bear market leg. Yet, that is precisely what we will get later on this year. The question is, are you ready for it?
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. May 19th, 2015 InvestWithAlex.com
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