10/30/2014 – An up day with the Dow Jones up 221 points (+1.30%) and the Nasdaq up 17 points (+0.37%)
Fund manger John Hussman believes the stock market is about to crash. Outlining his view and providing a number of important charts in this worthwhile article HUSSMAN: I Think The Stock Market Is Crashing. According to him the setup of today’s market is almost identical to the pre 1929, 1973, 1987, 2000 and 2007 crashes. The only thing missing now is a roll over and a crash.
And indeed, his position is very well researched. Yet, we must always remember a very important fact. It is the market’s job to fool as many people as possible at once. Bulls and bears. For instance, most bullish investors couldn’t have imagined that the Dow would be 1,500 points lower just 18 trading days after setting an all time high on September 19th. Suffering enormously in the process. Just as most of the bears couldn’t have imagined that the market would retrace over 90% of the losses in a matter of 10 trading days.
Proving, once again, just how quickly the attitudes can change. That is why it is so foolish to maintain or commit to either bullish or bearish views. One should always move with the market despite what the overall fundamental view is. That is why timing becomes so incredibly important. It allows investors to rotate in and out at important turning points while avoiding losses associated with both bull and bear legs. This approach will become even more important over the next few months.
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. October 30th, 2014 InvestWithAlex.com
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