6/26/2015 – A mixed day with the Dow Jones up 58 points (+0.32%) and the Nasdaq down 32 points (-0.62%)
For now, the stock market continues to trade within a tight trading range. Why? It is accumulating energy. Again, a massive and rather rapid stock market decline is coming soon. And while we won’t have a crash, considering the amount of margin debt out there, quite a few people will get wiped out. If you would like to find out exactly when this move will develop, to the day, please Click Here.
Greece:
As I have said over two years ago, the sooner Greece defaults, the better. For Greece. The sooner they follow Iceland’s 2008 Bankruptcy blueprint, the better off they will be. At the end of the day there is absolutely NO possible way that Greece can repay their debt. Even if the EU/IMF/ECB charlatans (excuse me….bureaucrats) are able to structure a deal, we will be back here again in 6-12 months.
For our purposes, I don’t believe Greece will impact the US capital markets in any major fashion. Default or rescue. Although, their eventual default might be viewed as “trigger” point for our anticipated bear market. As a result, pay attention but don’t give too much credence to what is going on in Greece.
US Needs to Think Twice About Antagonizing Russia
It’s finally nice to see mainstream US Media outlets take the other side of the trade. As yours truly. In all honesty, I have never seen anything like that before. If you are unaware, NATO/Pentagon/Administration’s playbook is as follows.
- Step 1: Finance a coup in Ukraine. (Do your own research. Our State Department has been directly tied to it. Through intersected international cables and phone calls by top diplomats)
- Step 2: Blame Russia.
- Step 3: Impose Economic Sanctions.
- Step 4: Blame Russia.
- Step 5: Run around screaming that Russia is about to invade Europe. Although there is no evidence to support the claim…none at all. This claim is laughable at best.
- Step 6: Blame Russia.
- Step 7: Move NATO’s military assets right onto the Russian border while arming Ukraine.
- Step 9: Whine, cry and bitch when Russia increases their border and nuclear buildup to counteract NATO.
- Step 10: Blame Russia.
I am not saying that Russia is without fault, but this is now getting ridiculous and dangerous. How long before the Russian Bear snaps back to this provocation by NATO……leading to an all out war? We might find out soon, but one thing is certain. No matter what happens, the West will blame Russia.
Finally, Why stocks are in store for a correction: Paulsen
“We’ve got two conditions that make it difficult. We’ve got corporate profit margins which are close to post-war record highs, and we’re also nearing full employment. So it’s difficult to find a growth rate that is good for the stock market.”
Q-2 earnings season will officially kick off next week. At this point I don’t anticipate any significant deviations from what we saw in Q-1. And there lies the problem. With Shiller’s S&P P/E Ratio of 27, the stock market is priced for perfection (to say the least). What makes it worse is the fact that we are at the end of this credit/QE/speculation driven economic expansion cycle.
That is to say, the risk has been maxed out while the economy is rolling over into an “official” recession. When these two factors collide, large market sell-offs typically follow.
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. June 26th 2015 InvestWithAlex.com
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