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Are We Dealing With A Fantasy Market?

daily chart ADecember9 2014

12/9/2014 – A mixed day with the Dow Jones down 52 points (-0.29%) and the Nasdaq up 26 points (+0.54%). 

Another superb MarketWatch article that I highly recommend.  Investors must believe in magic to buy stocks now

Most of the things discussed in the article match my overall view. Primarily, the fact that today’s stock market is priced beyond perfection and the fact that numerous technical/sentiment indicators are flashing a red light. So much so that I will explore this idea and show through valuation work (in about two weeks) that when adjusted for interest rates and QE, we are now at the highest valuation levels ever. Higher than 2000 and 2007 tops.

Of course, that doesn’t mean the stock market can’t push higher. It simply means that anyone who is investing for the long-term at this juncture is playing a very dangerous game of buying at the top.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: 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. December 9th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Are We Dealing With A Fantasy Market? Google

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Shanghai Plunges 5.43%. Let The Bloodbath Begin?

shanghai index

Over the last few weeks a slew of articles detailed how wonderfully the Chinese stock market was performing and how the Chinese people from all walks of life were shifting their hard earned savings to speculate in the stock market. Today, Shanghai composite plunged 5.43%.

So much for that Santa Claus rally everyone was expecting. Yet, the main question remains. Is this the beginning of a larger sell-off or a simple correction? Here is one theory.

THE QUOTE: Hu Guopeng, an analyst at Founder Securities in Beijing, said the plunge in China’s stock markets was a “technical correction” linked to the uncertainty about credit availability created by the change in collateral requirements. It “does not mean the end of the market boom,” Hu said.

Perhaps.  Yet, it is always a “technical correction” until it slowly turns into a 10%…..20%…..30%….etc….bear market correction. The bottom line is this. Investors should not guess or speculate on whether or not this is a technical correction. They should have a clear understanding that most worldwide markets are in a massive speculative bubble driven by imbeciles in power. A massive bubble that will eventually correct. If you would be interested in learning when, please Click Here. 

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Shanghai Plunges 5.43%. Let The Bloodbath Begin? Google

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Junk Bonds Suggest A Market Sell-Off

daily chart ADecember 8 2014

12/8/2015 – A down day with the Dow Jones down 104 points (-0.58%) and the Nasdaq down 40 points (-0.84%). 

The market continues to perform as anticipated. If you would like to find out what happens next, please Click Here. Believe it or not, today’s marks the first “broad” negative day for the market since October 14th bottom. That’s quite an accomplishment.

With that said, most widely followed markets remains within a few clicks of their all time highs. And while that is certainly the case, the number of divergences AGAINST this market rally continue to pile up.  Perhaps the most important divergence can be witnessed in the Junk Debt market Here’s why some smart investors are worried

In short, while the S&P index continues to surge higher, the junk bond market is not buying it. Leading to a standoff that can only be resolved in one of two ways. Either the junk bounces and follows the market higher or the S&P is in for quite a correction.

junk bonds 3

Which way will we break? Well, with the S&P is pushing against a major resistance line and with the junk bond market approaching a point of technical breakdown, the market Gods are pointing their finger towards a major market correction.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: 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. December 8th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Junk Bonds Suggest A Market Sell-Off Google

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InvestWithAlex Podcast Introduction

Small Podcast ImageOur daily/weekly podcast for InvestWithAlex.com is back. Please email any of the questions that you might have (stocks, bonds, markets, politics, etc…) to [email protected]. First real podcast tomorrow.

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Even The BIS Warns Of A Bubble. Are We Climbing The Wall Of Worry?

Wall Street bubbles

You know it’s bad when even the BIS warns that financial markets might be in an unstable bubble. BIS warns of market fragility despite bullish mood

The Bank for International Settlements warned Sunday that global financial markets appeared to be increasingly fragile despite bullish sentiment.

There two ways to look at this report. First, you can dismiss this view as a contrary indicator. Surely, when even the BIS begins to warn of a market bubble, we must be climbing the wall of worry. This view would suggest the market has another few years to run before any sort a correction occurs.

The other way to look at this matter is as follows. Things and valuations are so out of their historic norms that even slow moving organizations like the BIS can sport them. While I will let you come to your own conclusion, my view hasn’t changed. My mathematical and timing work suggests that we are about to embark on a massive bear market. If you would like to know when it starts, please Click Here. 

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Even The BIS Warns Of  A Bubble. Are We Climbing The Wall Of Worry?  Google

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Whispering Stock Market. Are You Listening?

daily chart ADecember5 2014

12/5/2014 – A positive day with the Dow Jones up 58 points (+0.33%) and the Nasdaq up 11 points (0.24%).  

A fairly good interview with Nouriel Roubini and I encourage you to take a look. As yours truly, Mr. Roubin believes that we are in a massive bubble. And while I agree with most of his views, one thing rubs me the wrong way. According to Nouriel, while we are in a massive bubble, it will not burst until 2016. Why 2016? Well, no real reason was provided and we might as well claim that this bubble will only burst in the year 2158 or tomorrow. Regardless, it is a good overall look at where we are today.

In the meantime, the yield curve continues to compress. Over the last few decades the yield curve has proven to be one of the best indicators of where we are headed. It is now signalling that a severe recession is just around the corner. And while the yield curve is a poor timing indicator, it works well when we combine it with today’s valuation levels. That  is to say, when the yield curve is compressing and you find stocks at historically high/extreme valuation levels, as they are today, it safe to assume that the market is topping out.

Yield Curve as of 2014 - Dec

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: 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. December 5th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Whispering Stock Market. Are You Listening? Google

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The Nuclear World War 3 Is Coming Soon: Shocking TIME Formula Reveals Exactly When How & Why.

book - small coverI have argued since about this time last year that a new Cold War with Russia was starting. If you still don’t believe that the US is waging an all out economic war against Russia and its people, you are living under a rock.

With that said, here is what most Americans don’t understand. We have now passed the point of no return. Not in terms of going into an all out war against Russia (for the time being), but in terms of creating a real enemy. Putin and the Russian people will never forget this attack on their economy through the price of oil and destabilization of its currency. What’s worse for the US, this has unified Russia like never before. Consider the following….

Here is the bottom line. What you are witnessing today is a start of a new cold war that will eventually turn into an all out war. It will take quite a few years, but it will end badly for all of us. In fact, things continue to develop exactly as predicted in my newly published book (and previously published report) The Nuclear World War 3 Is Coming Soon: Shocking TIME Formula Reveals Exactly When How & Why.  Check it Out

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The Nuclear World War 3 Is Coming Soon: Shocking TIME Formula Reveals Exactly When How & Why. Google