2/5/2014 – Another up day with the Dow Jones up 212 points (+1.20%) and the Nasdaq up 48 points (+1.03%).
On January 31st I told my subscribers that the market might bottom and turn around at the Dow 17,050 (+/- 50 points) on February 3rd (+/- 1 trading day). The Dow hit an Intraday bottom of 17,038 on February 2nd. Then turned around and surged 840+ points in 4 trading days. Thus far.
The question is, is this the beginning of the next rally (buy the dip) or is this yet another “short squeeze”?
There are a number of things to consider.
- The structure of the move itself is indicative of a bounce. Sharp and fast.
- Very few stocks are participating in this up move. Even high flying and earnings killing stocks like Apple (AAPL) are not participating in this rally.
- Most investors remain overwhelmingly bullish and the bears are afraid to touch this market with a 10 foot pole.
- The EU might finally blow sky high. Thanks Greece. It’s about time.
- Massively overvalued and highly speculative stock market. Upcoming rate hikes.
- A number of other macroeconomic issues that might blow up (Russia, Middle East, etc..)
- Collapsing Baltic Dry Index, slowing economies, currency wars…….
- Another view…..The Stock Market Is Weaker Than It Looks
And that’s just off of the top of my head. In other words, while this rally might be the “real deal”, don’t get too excited. Given the circumstances above, the market can just as easily dive 1,000-2,000 points by the end of February.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. February 4th, 2015 InvestWithAlex.com
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