9/10/2018 – A mixed day with the Dow Jones down 60 points (-0.23%) and the Nasdaq up 21 points (+0.27%)
The stock market finds itself at a very interesting juncture. 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
We have beaten the bearish case for the market to death on this site over the last few months. Due to extreme overvaluation, speculation and monetary insanity associated with today’s markets.
We wrote before about Charles Nenner’s incredible prediction for the Dow on a nuber of occasions. For instance, Charles Nenner Confirms His Forecast: The Dow Going To 5,000?
It appears the S&P might be pointing towards a similar faith. Consider the following….
Stocks Face Three Potential Outcomes: Pretty Bad, Bad and Horrific
Something has changed in the market.
The momentum-driven rally that pushed stocks to new all-time highs completely floundered a few weeks ago. What should have been a monster breakout on massive buying power ended up being a feeble push to new highs before stocks promptly rolled over.
Now, most investors will dismiss the above as crazy, even impossible.
Yet, consider what has transpired between the bottom on the S&P at 666 in 2009 and today.
Not very much. Well, the FED did pump a tremendous amount of funny money into the global economy. The debt levels have exploded, the corporates have used this funny money to repurchase their stocks at record valuation levels, margin debt at 3 times where it was in 2007, etc…
That is to say, the fundamentals haven’t improved. They have gotten much worse if we consider today’s incredible debt levels that are necessary to maintain this Ponzi Scheme. And did I mention that we are facing rising interest rates, inverted yield curve, Trillion dollar deficits as far as the eye can see and a trade war?
Doesn’t matter. At this stage it is all a matter of perception. If investors begin to discount all of the above, as they should, 500 level on the S&P becomes ever more so realistic.
Will we ever get there? 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
