How I Predicted December 26th Top And How This Oil Crash Will Impact The Stock Market

Daily Chart January 30th

1/30/2015 – A big down day with the Dow Jones down 248 points (-1.42) and the Nasdaq down 48 points (1.03%). 

The market continues to perform as anticipated. As the market turned around and surged higher on December 16th, 2014, my subscribers knew exactly what that meant. My mathematical and timing work at the time projected the next tuning point on December 27th at 18,100 (+/- 50 points). The Dow topped out on December 26th at 18,103. Not bad if you ask me.

Since then, the Dow is down -5.2% So, are we about to bounce or is this sell-off just getting started? Click Here to find out.

Now, lets get to oil and what the collapse means for the overall stock market. One of the best technical/fundamental looks at the subject matter that I have seen can be found here Is Oil’s Big Capitulation Sell-Off Still Ahead?  I couldn’t agree more and, once again, that’s the reason why you shouldn’t try to catch a falling knife. Plus, oil might stay at today’s levels for quite some time.

oil5

With that in mind, my primary concern is as follows. This oil price collapse hasn’t yet been felt throughout corporate America and corporate earnings. We will only start seeing that in Q1 of 2015. And by default, in the overall stock market indices. Meaning, a huge number of companies will have to write stuff off or guide lower.

Yes, there will certainly be a positive impact from lower oil prices. Such as higher consumer discretionary spending power and cost savings for a few select companies. Yet, I don’t believe it will be as significant as most financial analyst believe. And as I have suggested a few days ago, the Dow Transportation index is not reacting to any such cost savings Shiller Thinks You Are Scared & What Does The Dow Transports Index Tell Us.

That is to say, I believe the negatives will outweigh the positives by a large margin. Shale development/production is no longer economical. Thousands of companies will default and go out of business. Tens of thousands will lose their high paying jobs. Banks will be impacted. Earnings will be impacted. Junk debt market will blow up. Market caps will be cut in half. And so on and so forth. Will this lead to Trillions in losses in both market and real capital? No one knows just yet. In either case, expect this oil crash to spread through the rest of the economy and capital markets in 2015.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 30th, 2015  InvestWithAlex.com

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How I Predicted December 26th Top And How This Oil Crash Will Impact The Stock Market Google

Are We In A Bear Market Already?

Daily Chart January 29th

1/29/2015 – A positive day with the Dow Jones up 225 points (+1.31%) and the Nasdaq up 45 points (+0.98%). 

A number of articles worth your time today……

I agree with both authors. Here is another good  way to look at today’s market.  As you know, I don’t make it a secret that based on my mathematical and timing work the stock market will compete it’s secular bear market in 2017 (2000-2017).  I have very little doubt about that.

Now, given the upcoming bear leg of 2014/15-2017 do you think it is possible that the Dow will end 2017 below 2007 top of 14,280?

Based on my mathematical work not only it is possible, it is almost a certainty. Yielding another decade of no returns for long-term investors. In other words, given today’s massive valuation levels most investors would be well advised to sell now and go into cash. And while this might not sound as attractive as the stock market gaining 10% this year, it’s a hell of a lot better than taking a 20-40% haircut over the next 2 years.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 28th, 2015  InvestWithAlex.com

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The FED Decision, Apple, Yields & What The Market Is About To Do

Daily Chart January 28th

1/28/2015 – A big down day with the Dow Jones down 195 points (-1.12%) and the Nasdaq down 43 points (-0.93%). 

The stock market continues to behave as forecasted. If you would like to find out what happens next, please Click Here. 

A number of very important things to consider today. First, a very important fundamental/technical look at today’s market. Forbes: Watch These Interesting Stock Market Patterns Forming Right Now  I highly encourage you to study the article in great detail.

Dow Patterns

Second, today’s market action is incredibly important considering….

  • The FED decision to not change course.
  • Plunging yields.
  • Market’s inability to rally despite Apple’s blow out quarter.

You can look at all of the above in a number of different ways. It can be debated that the FED decision not to alter their eventual interest rate hike plan bodes well for the overall US Economy. At the same time, neither the yields nor the stock market are buying that premise. If anything they are flashing a red warning light. And since there is are no fundamental reasons for this massively overpriced stock market to rally, as earnings are not very good and the US Economy is rolling over,……….I wonder what happens next.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 28th, 2015  InvestWithAlex.com

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The FED Decision, Apple, Yields & What The Market Is About To Do  Google

The FED, Deflation, Gold, Oil and Other Commodities.

Daily Chart January 27th

1/27/2015 – A negative day with the Dow Jones down 291 points (-1.65%) and the Nasdaq down 90 points (-1.89%). 

Hedge fund manager Jeff Gundlach outlines a number of very important observations that I wholeheartedly agree with (watch the video below). Particularly……

  • We are in a deflationary environment.
  • The FED would be stupid to raise rates due to upcoming economic weakness, strong dollar and no inflation.
  • The only reason to raise interest rates in this environment is to re-load on future “recession fighting tools”.

Bingo!!! Despite zero interest rates and a massive credit infusion into our economic system in the form of QE, it is now becoming evident that the real economy is rolling over into a massive recession. If anything, the FED is too late. They should have started raising interest rates about a year ago. Now, they might be forced to raise interest rates into a double whammy of economic slow down and falling stock prices.

Here is the most important thing to consider when it comes to the stock market. I don’t believe the FED will alter their message in terms of raising interest rates over the next few months. And as investors begin to comprehend the unfortunate setup above (raising rates in a recessionary environment) all hell is going to break loose in the stock market. Finally, I believe it is only after a big sell-off that the FED might reconsider raising interest rates. Not before it.

Watch the video below as he continues to discuss gold, oil, etc… It is definitely worth your time.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 27th, 2015  InvestWithAlex.com

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Is The US Dollar About To Reverse?

Daily Chart January 26thrd

1/26/2015 – A positive day with the Dow Jones up 6 points (+0.03%) and the Nasdaq up 14 points (+0.29%). 

The stock market continues to trade within a tight trading range. That might change in a relatively short order. If you would like to find out which way the market will break and when, please Click Here. 

In the meantime, the US Dollar continues to surge higher. Given the chart below, is it prudent to expect this trend to continue for the foreseeable future? Let’s explore.

dollar-chartAs discussed in our weekly podcast (Saturday’s post), it is highly probable that the dollar is approaching a major turning point for the following reasons.

  • The long-term chart above suggests that we are still in a major downtrend and now approaching a major resistance level.
  • Everyone is long the “King Dollar”.
  • For the dollar to truly bottom, a double bottom around 2011 levels is likely.
  • International currency war were everyone is trying to debase their currency has started.
  • The FED might postpone interest rate increases
  • Upcoming recession and another QE is likely.
  • Etc…..

In other words, there are many reasons for the US Dollar to come down now. As a result, it would be wise not to have a large long dollar position going forward. And if you do, it would pay to watch your position like a hawk.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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 mSubscribers 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. January 26th, 2015  InvestWithAlex.com

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Is The US Dollar About To Reverse?  Google

The Shocking Truth Behind Currency Wars, Soros, QE & The FED (Part 2)

Daily Chart January 23rd

1/23/2015 – A mixed day with the Dow Jones down 142 points (-0.80%) and the Nasdaq up 7 points (+0.16%)

In Part 1 below, Nouriel Roubini did a fairly good job explaining the economic mess we are all in. Let’s now take a closer look.

Soros: ECB QE means inequality and asset bubbles

The sheer size of the massive injection and the duration, and so on, will have undoubtedly an effect…If I were still active in the business I could see some fairly substantial moves coming and financial stability can create dislocations and turmoil from time to time. It will benefit the owners of assets and actually wages will remain under pressure through competition and unemployment. My main concern that it will make divergence between rich and poor bigger than it already is.

Soros is right on the money. If you haven’t noticed, with most industrial nations trying to debase their currencies, a major currency war is now a reality. As a result, a stronger dollar in addition to a weaker US Economy might force the FED to postpone any and all interest rate increases.  As central banks surprise, Fed may have to throw in the towel

That’s great……right? 

Traditional thinking would lead you to believe that this is great for all asset prices. After all, lower interest rates, debased currencies, everyone being on the same side of the trade and massive QE can only lead to surging stock market prices. Perhaps. Yet, the biggest question no one is asking is…….

At what point does this financial fraud of enormous proportions blows up? 

Meaning, at what point does the stock market rolls over and begins to head south, way south. No matter what kind of nonsense the FED/ECB is proposing at the time nor how much the next round of QE is.

Well, I’ll go out on the ledge and propose that we are already at this juncture. With the FED being backed into a corner in terms of interest rate increases and with the ECB finally blowing their 1 Trillion, the jig might be up. In other words, watch the stock market very carefully. Should it decline despite all of the intervention above, investors will very quickly lose confidence in the FED. It is at that point that the bottom will fall out.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 23rd, 2015  InvestWithAlex.com

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The Shocking Truth Behind Currency Wars, Soros, QE & The FED (Part 2)

Is QE Fatigue About To Kick In?

Daily Chart January 22st

1/22/2015 – An up day with the Dow Jones up 263 points (+1.5%) and the Nasdaq up 83 points (+1.78%). 

Well, the ECB finally went all in with their massive 1 Trillion QE plan. And the result thus far? It appears the markets are not as impressed as Mr. Draghi would have liked. I think Carl Icahn offers a possible reason. At some point investors and “the street” will start seeing this fiscal insanity for what it really is. It is at that point that the bottom will fall out. The thing is, that could happen as soon as tomorrow.

Its a must watch video for anyone following financial markets. A lot of gold. 

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 22nd, 2015  InvestWithAlex.com

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Is QE Fatigue About To Kick In? Google

Bulls Are Back…..Is It Time To Short?

Daily Chart January 21st

1/21/2014 – Another positive day with the Dow Jones up 39 points (+0.22%) and the Nasdaq up 12 points (+0.27%)

The market continues to spin its wheels. In the meantime, the bulls are back with the vengeance, despite the Dow being down 3% since its December 26th top. Consider the following news flow.

International investors are the most bullish they’ve been on the U.S. markets in more than five years as America is seen as a bright spot in an otherwise worsening global economy, according to the latest Bloomberg poll.

Same old, same old. The only reason America is viewed as a “bright spot” is because investors have not yet lost faith in the FED. Or I should say the massive liquidity fraud perpetrated by the FED. You can’t print your way into prosperity and once investors realize that, well, watch out below.

The cold hard truth remains. The stock market is in a massive overvaluation bubble. By any historical measure. Margin debt is at an all time high. Yields and commodities are collapsing (suggesting a big recession ahead). And as suggested above, bullish animal spirits are alive and well. As a result, investors should pause and ask themselves if RIGHT NOW would be a good time to reverse position and go short. At the very least, to go into cash.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 21st, 2015  InvestWithAlex.com

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Are You Ready For A Bear Market?

Daily Chart January 20th

1/25/2015 – A positive day with the Dow Jones up 4 points (+0.03%) and the Nasdaq up 20 points (+0.44%). 

The stock market has been, more or less, stuck in a trading range since a very important PRICE/TIME juncture of July 17th, 2014. That’s exactly six months if you are counting.

The question becomes, is the market consolidating or are we about to breakdown?

Well, if you are to listen to mainstream financial media you would be assured that the stock market is just starting its secular bull run and it just a matter of a few short years before we see the Dow hit 40K. Unfortunately, I do not share in their enthusiasm. Consider the following.

  • Collapsing yields and flattening yield curve suggest a massive recession ahead.

yield curve

  • Oil Prices continue to collapse. Down over 50% in just 6 months. 
  • Baltic Dry Index continues to slide while hitting multi-year lows. 

baltic dry index is breaking down

All while stocks are selling at spectacular valuation levels reminiscent, if not higher, than 2007 and 2000 highs. I just don’t see how any sort of a secular bull can develop here.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. January 20th, 2015  InvestWithAlex.com

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Are You Ready For A Bear Market?  Google

Weekly Update: Marc Faber, FX Bloodbath & Upcoming Bear Market

Daily Chart January 16th

1/16/2015 – An up day with the Dow Jones up 190 points (+1.10%) and the Nasdaq up 63 points (+1.39%).

The stock market continues to perform exactly as forecasted. If you would like to find our what happens next, please Click Here. In the meantime, a number of things to consider over the weekend.

Marc’s fundamental view of our current economic environment is right on the mark. I couldn’t agree more. Unfortunately, his timing has been terrible over the last few years. As a result of predicting a massive bear market since about 2011. Has he thrown in the towel?

Not by a long shot, but his timing and his ultimate S&P target might backfire…..once again. In terms of timing and missing a large down move. When perma bears such as Marc Faber suggest that the market is about to surge higher, the maximum bearish pain threshold is hit and the time might be right to go short. That is too say, don’t wait for 2,500.

By now everyone should be familiar with what the Swiss did with their Swiss Franc, its impact on currency/financial markets and complete devastation they have caused throughout FX industry. As a result, everyone from Goldman Sachs to a typical day trading grandmother suffered massive losses.

There are two simple lessons here. 

First, don’t try to be on the same side of the trade as everybody else. It rarely pays. On the contrary, the probability of it blowing up in your face is typically high. Just as we saw. Second, don’t use leverage. Countless speculators, including 2-5 large FX brokers were literally wiped out. I am sure we haven’t yet heard about all the damage the move caused. In many cases capital that took years and even decades to accumulate, was destroyed in a matter of minutes. In other words, don’t leverage up 1:100 and expect good things to happen. Sooner or later you will get destroyed.

A good overall look at why smart investors should anticipate a bear market sooner rather than later. An article definitely worth your time. Think about it in the following fashion. Those who outright dismiss even the slightest possibility of a bear market, despite a 5.5 year bull market cycle, might soon find themselves with large losses. Just as they did in 2008. Yet, those who a smart enough to prepare will be able to avoid losses and even profit.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please NoteA 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. January 16th, 2015  InvestWithAlex.com

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Weekly Update: Marc Faber, FX Bloodbath & Upcoming Bear Market Google