10/9/2015 – A positive day with the Dow Jones up 33 points (+0.20%) and and the Nasdaq up 19 points (+0.41%).
In early September of 2015 I updated my subscribers on some important TIME turning points. Particularly.
- September 17th 2015 (+/- 1 trading day) and
- September 29th 2015(+/- 1 trading day)
As we approached September 17th, the FED interest rate decision date, an important top target was identified on the Dow at 16,850 (+/- 25 points). The target was hit right after the FED decision, but the market spiked through it. Topping out a few minutes later at 16,933. Then reversing and selling off to the tune of 1,000 Dow points.
We then faced a very similar situation on September 29th. As the market was collapsing and everyone was starting to freak out, I have identified an important mathematical resistance point on the Dow at 15,965 (+/- 20 points). This point was identified a few days prior. The market proceeded to deliver an exact hit, in this case bottoming on September 29th at 15,942. Or, it was 3 points outside of the range above.
What happens next? Well, if you would be interested in this kind of analysis, please Click Here.
Now, as we head into the weekend, quite a few additional things are worth your attention.
Fed official still favors 2015 hike but notes dimmer outlook
Just give it up Janet Yellen. No one believes you anymore. Well, if they have at least half a brain. And as I have said here at least a million times before, the FED will not raise interest rates in any meaningful way. Most likely not at all. The market and resurfacing deflation will prevent them.
Plus, I have a quick suggestion for Janet Yellen. Instead of trying to BS the market, start working on your “Crisis Of 2015-2017” whitepaper. And think long and hard about how you will explain to the fools in Washington as to why the stock market has crashed and the US Economy went into a tailspin. All while the interest rates were at zero and you were printing money through QE. As a friendly advice, you can always blame Mr. Putin.
This rally deserves respect, though Nasdaq weakness glares
As I have said here a few days ago, what a difference a week makes. Around September 29th, everyone was extremely bearish. Predicting all sort of things, including a market crash. Today, the opposite is true. The bears got squeezed while most in the financial industry are calling for a market bottom. Yet, the fundamentals haven’t changed.
What fundamental?
- The FED is stuck in the worst possible position. Unable to raise interest rates and/or stimulate the economy further.
- With QE, zero interest rates and stock buybacks monetary velocity slowing, there is nothing to propel us forward.
- The US Economy is rolling over into a recessionary environment.
- Earnings are expected to decline. If not collapse. Just as they did in 2008/2009.
- All of the above should send chills down investors spines once they realize the stock market is selling at a Shiller Adjusted S&P P/E multiple that is the 3rd highest in history. Right behind 1929 and 2000 tops and on par with 2007 top.
Considering the above, you won’t find Marc Faber, Jim Rogers, Carl Icahn and many others switching to the bullish side just because the market staged a 2%+ rally. Don’t forget, these structural moves take time. In many cases years.
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. October 9th, 2015 InvestWithAlex.com
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Outrageous Mistake: How We Missed September 29th Bottom Call By 3 Points Google