Intel (INTC) Guides Down. Are Others About To Follow?

Daily Chart AMarch 12th

3/12/2015 – An up day with the Dow Jones up 259 points (1.47%) and the Nasdaq up 43 points (0.89%)

It has been my premise that the stock market has disconnected from any sort of economic reality a while ago. And while numerous Macro Economic indicators are literally collapsing, as covered here previously, the stock market is sitting near all time highs.

Earlier today Intel (INTC) slashed its Q1 revenue forecast by 7%. The bad old days may be back for Intel and other PC stalwarts Blaming it mostly on weaker demand and stronger dollar.

The change in revenue outlook is a result of weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain.The company believes the changes to demand and inventory patterns are caused by lower than expected Windows XP refresh in small and medium business and increasingly challenging macroeconomic and currency conditions, particularly in Europe.

Most financial pundits were quick to dismiss this lower guidance as a “one time event” limited to tech stalwarts. I, however, think there is a much bigger story there. I believe Intel is just the first large company to guide lower. Many more will follow.

Again, in addition to Macro data collapsing, the GDP expectations are also being adjusted down. By 20-50%, depending on the source. That is to say, it is just a matter of time before others start guiding lower as well. If not now, Q2 should do the trick. Once that realization sets in, it won’t be long before the stock market starts playing catch up with the fundamental data below.

Macrodata

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. March 12th, 2015 InvestWithAlex.com

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