2/4/2015 – A mixed day with the Dow Jones up 8 points (+0.04%) and the Nasdaq down 11 points (-0.23%).
George Soros likes to look for mass delusions, ride the trend up until it runs out of steam and then take the other side of the trade. When we look at the stock market today, perhaps there is no greater delusion than the FED and its overwhelming believe in the stimulus. Paul Singer states….
Stimulus is an uncertain experiment in market manipulation that, like some cult religion, has otherwise intelligent people believing “mass delusions” After six years of “monetary debasement,” also known as QE, central bankers are trapped. Stimulus has “not lit the economy on fire,” except among assets that are held by those who have significant equity exposure: high end real estate, luxury goods, artwork and the like.
I couldn’t agree more. With that in mind, I don’t believe in the utter destruction of the dollar. If anything, I have been a dollar bull over the last 24 months. As evident here King Dollar.
The tide is now shifting. I have shown the chart below before. The dollar is approaching a powerful resistance line. Give today’s currency war, overall macro economic picture, significantly overvalued stock market, FED’s eventual rate hike reversal and possible additional QE,…….it is highly probable that the dollar is topping out and is getting ready to head lower. To test 2011 lows. Another overcrowded trade that is about to blow up.
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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