3/2/2015 – An up day with the Dow Jones up 153 points (+0.84%) and the Nasdaq up 45 points (+0.90%).
The stock market continues to behave as forecasted. If you would like to find out what happens next, please Click Here.
First, a brief history lesson. The last time the Nasdaq hit 5,000 was in March of 2000. It didn’t stay at that level for very long, a few trading days if I remember correctly. Once the blow off top was set, the index proceeded to collapse 75% in 2 years. Yeah, yeah……I know…..it’s different this time. At least according to the mainstream media, today’s valuation levels are supported by earning (an assumption that I have dismantled here quite a number of times).
With that in mind, 5000 is an important level not only from a psychological point of view, but from a technical one as well. Double tops of such big proportions are incredibly important as they often represent major turning points. Insiders tend to agree.
- Why the ‘Smart Money’ Is Bailing Out of the Bull Market
- Massive Insider Selling as Market Hits Record Highs
The first link deserves at least 5 minutes of your time. It presents a fairly good overview of the majority of the things I have covered here over the last few months. Insider selling, overvaluation, excessive bullishness, overbought indicators, speculation, debt fueled buybacks, slowing earnings, weak economic data, etc….
The only remaining question is…….will the Nasdaq break through 5,000 and keep going higher, an outcome most investors anticipate – OR- will it test this double top, back off and then sell-off? If you have been reading my blog for any length of time, I think you know the answer to that questions.
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 2nd, 2015 InvestWithAlex.com
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