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Why Both Bulls & Bears Will Miss The Upcoming Bear Market

daily chart Sept 24 2014

9/24/2014 – A strong up day with the Dow Jones up 154 points (+0.90%) and the Nasdaq up 46 points (+1.03%). 

The stock market continues to perform as anticipated. I had a heated discussion with a Perma Bull last night. That led to an idea for today’s update and the reason why 99% of all bulls and bears will miss the upcoming bear market.

During our discussion the Perma Bull suggested that he will be able to get out of the market as soon as the bear market starts, hedge with put options, blah, blah, blah…..

The reality is very different. The psychological framework behind today’s market will prevent ALL from either avoiding or participating in the upcoming bear market. Today, this mindset is very straight forward.

  1. For Bulls this market will never go down. Every sell off is recovered within a relatively short period of time and everyone is proclaiming that this secular bull market has another 5-10 years to go. Despite the fundamental backdrop, the only way is up. Climbing the wall of worry….right?
  2. For Bears this market has been an absolute disaster. In simple terms, the bears are scared shitless of this market. No wonder investor survey reveals that the % of bearish investors are at an all time low (since they started tracking the metric in 1985)

Interestingly enough, both mindsets lead to the same kind of thinking and to the same eventual outcome when the bear market begins to develop. Leading to massive bullish losses and forgone opportunities for the bears to profit. Here is how it will play out. It always does.

  • First 5% decline mindset:  This is just a simple correction. Bulls don’t sell, bears don’t initiate short positions.
  • 5-10% decline mindset: This is the 10% correction everyone was talking about. Bulls don’t sell, bears don’t initiate short positions.
  • 10-20% decline mindset: Darn it. This is that 20% correction that was overdue. Too late to sell now, its time to buy more. Too late to go short now, the move is almost over.
  • 20-30/40/50%: F$%*. Bulls begin to panic while selling at a loss. Bears begin to short, without realizing that it is too late to short (future losses are probable).

As you can see, today’s mindsets for both bulls and bears will lead to significant losses when the upcoming bear market of 2014-2017 begins to develop. If you would be interested in avoiding this faith and 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. September 24th, 2014 InvestWithAlex.com

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Why Both Bulls & Bears Will Miss The Upcoming Bear Market  Google

Day Trading Grandma Makes A Small Fortune

daily chart Sept 23 20149/23/2014 – A down day with the Dow Jones down 116 points (-0.68%) and the Nasdaq down 19 points (-0.42%). 

A great market summary in today’s MarketWatch Article Everyone is a genius in a Fed-induced stock rally

A few important points if you don’t feel like reading. 

  • Everyone and their day trading grandmother believe that they are geniuses. Mostly because the market hasn’t had a real correction in over 5 years.
  • Most investors are high-fiving each other because they are making so much paper money.
  • Amateur investors and financial commentators are openly insulting well researched bears.Including market pros like Marc Faber and Bill Freckenstein.
  • Most bears have given up.
  • Everyone is predicting the Dow 18K, 20K, 25K, etc…..

Understandably, it is incredibly difficult to remain bearish in such an environment. Yet, despite the uptrend and all the bullish hoopla, it is important to remember that no one expects a bear market to start when it actually starts. And you don’t have to go further than October 11th of 2007 in order to see this principal in action. Jesse Livermore was right on the money when he said, “To make big money you have to sit alone and wait.”

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. September 23rd, 2014 InvestWithAlex.com

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Day Trading Grandma Makes A Small Fortune Google

When Will The Market Correct?

daily chart Sept 22 2014

A down day with the Dow Jones down 107 points (-0.62%) and the Nasdaq down 52 points (-1.14%). 

While most markets continue to trade within a tight trading range, most investors continue to ask the same questions. When will the correction come and what sort of a catalyst will set it off? G20 finance ministers add to fears of a stock-market bubble

The big assumption or the error that I must bring to your attention here is that we will get some sort of a correction, not a multi year  bear market. As I have suggested so many times before, a bear market of 2014-2017 is just around the corner. Second, there won’t be a catalyst. The market will simply turn around one day and start heading lower. Accelerating pace as it goes along. Just as it did in October of 2007. And while some sort of a catalyst will be assigned to the market post-mortem (ex…. Alibaba going public), it won’t have anything to do with the actual turning point. Again, the market will simply top out, turn around and head lower.

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. September 22nd, 2014 InvestWithAlex.com

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When Will The Market Correct?  Google

Alibaba Stupidity

daily chart Sept 19 2014

9/19/2014 – A mixed day with the Dow Jones up 14 points (+0.08%) and the Nasdaq down 14 points (-0.30%).

I have two things for you to ponder over the weekend.

Alibaba worth more than $200B… just what is it?

I think when the history books are written this massive Alibaba (BABA) IPO might be viewed as the “Ringing of the Proverbial Bell” for this bull market cycle. And do I really need to talk about its valuation? As I write this, the company is selling at 24 times revenue. For god’s sake……Tesla (TSLA) which is another highly speculative stock is selling at just 13 times revenue. Amazon, who most closely resembles Alibaba, is selling at just 1.9 Revenue. In other words, the valuation of Alibaba is 12 higher than Amazon and twice as high as Tesla. If this doesn’t scream out “MASSIVE STOCK MARKET BUBBLE/TOP” to you, well, you deserve to lose a lot of money.

‘Bubble in everything, everywhere’: Marc Faber

We live in the world where a 25 year old financial commentator with a nice haircut and a bachelors degree in marketing can make fun of well researched investors like Bill Fleckenstein for, get this, missing the latest rally of 2%. Over the last few months Marc Faber received the same treatment on at least two financial network. The question you have to ask yourself is this. Who would you rather listen to

  1. Openly bearish money managers like Marc Faber, Bill Fleckenstein, Carl Icahn, George Soros -OR-.
  2. Financial commentators who have no idea what they are talking about and/or who most likely have most of their money “well diversified” though at least 5 “well balanced” mutual funds.

The choice, as always, is yours.

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. September 19th, 2014 InvestWithAlex.com

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 Alibaba Stupidity Google

Should Janet Yellen Declare Victory?

daily chart Sept 18 2014

9/18/2014 – An up day with the Dow Jones up 109 points (+0.64%) and the Nasdaq up 31 points (+0.68%). 

The consensus is in. Everyone and their day trading grandmother now believe that the markets can only go up. The FED has done the impossible by printing money and stabilizing the economy. Even Mr. Obama was so excited about the news that he committed the biggest sin of all. He took full credit for this ” incredibly strong economic recovery.”  I wonder if he will take credit when this economic miracle blows sky high.

Unfortunately, most investors are committing a massive mistake by believing that the FED  A. Had anything to do with stabilizing the markets back in 2009 and B. They will now be able to anticipate and prevent future declines. They are once again confusing cause and effect. The FED is always behind the ball. And you don’t have to look further than every single financial crisis over the last 30 years.

It is the stock market that drives FED policy and not the other way around. Just remember the following. One of these days the market will stop going up, reverse and initiate a massive bear leg. Regardless of whether or not Janet Yellen likes it. You have been warned.

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. September 18th, 2014 InvestWithAlex.com

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Should Janet Yellen Declare Victory?  Google

What You Ought To Know About Your Stock Market Gains Vanishing Into Thin Air

daily chart Sept 17 2014

9/17/2014 – An up day with the Dow Jones up 20 points (+0.12%) and the Nasdaq up 9 points (+0.21%)

Most markets continues to trade within the confines of their 3 week trading range. And despite Janet Yellen’s dovish stance, one primary question remains. Now what? With today’s backdrop of less liquidity, proposed higher interest rates and a massive speculative bubble in the stock market (well, most asset classes), what happens next?

Perhaps Bill Fleckenstein has the answer. Fleckenstein on missing the rally: ‘So what?’

“I think the stock market is more crash-prone than ever,” Fleckenstein said Tuesday on CNBC’s “Futures Now.” “So will we get through September and October without some sort of an accident? I don’t think we will, but I don’t know-we’ll just have to see. If you want to pursue idiots like the Fed doing crazy policies, and if you think you can get out in time, go for it. I don’t want to try to do that. Fleckenstein may have missed out on gains, but “so what?,” he asked rhetorically. “When markets decline, how fast it will be taken away from you.”

He is right on the money and that’s what most people or investors don’t get. Despite the bulls hyperventilating about how great this bull market is, once a bear market gets going or god forbid crashes, most of the gains accumulated over the last few years will vanish into thin air. In a matter of weeks, if not days. In fact, repeat after me…. “POOF”. Yep, just like that.

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. September 17th, 2014 InvestWithAlex.com

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What You Ought To Know About All Of Your Stock Market Gains Vanishing Into Thin Air Google

Are We In A Bear Market Already or Another 20% Rally Just About To Start

daily chart Sept 15 20149/15/2014 – A mixed day with the Dow Jones up 44 points (+0.26%) and the Nasdaq down 49 points (-1.07%).

Interesting market action today that yielded a number of divergences. Yet, the number of opinions on what is really going on is even higher. Here are just a few with some of my comments.

  • This chart says the S&P could rally another 20%:  Same old story. We are in a secular bull market that has another 10 years to ago. Only one problem, bear markets don’t last 9 years. We are still in a bear market that will complete in 2017.
  • Record S&P 500 Masks 47% of Nasdaq Mired in Bear Market: About 47 percent of stocks in the Nasdaq Composite Index are down at least 20 percent from their peak in the last 12 months while more than 40 percent have fallen that much in the Russell 2000. So, where exactly is this bull market that everyone is cheering so much?
  • Tesla plunges as analysis says too much, too fast: If you really need some analyst to tell  you that Tesla’s stock is way ahead of its growth or the rest of its valuation metrics, you shouldn’t be in the stock market. In fact, if you do not understand why TSLA is in a massive speculative bubble here, you shouldn’t be in the stock market either.

So, what is going on? The only thing that I am allowed to say here is as follows. The stock market has been accumulating energy since the beginning of this year and to a lesser extent over the last 3 weeks. Meaning, a very powerful move is just around the corner. If you would be interested in learning which way this market will break (up or down) and exactly when (to the day), 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. September 15th, 2014 InvestWithAlex.com

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Are We In A Bear Market Already or Another 20% Rally Just About To Start  Google

Is McDonalds The First Of Many Shoes To Drop?

daily chart Sept 11 2014

9/11/2014 – A mixed day with the Dow Jones down 20 points (-0.12%) and the Nasdaq up 5 points (+0.12%). 

Marc Faber thinks so and I agree with him 100%. Listen/watch the video and decide for yourself.

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. September 11th, 2014 InvestWithAlex.com

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Is McDonalds The First Of Many Shoes To Drop? Google

What You Ought To Know About Today’s Trading Range

daily chart Sept 10 2014

9/10/2014 – An up day with the Dow Jones up 55 points (+0.32%) and the Nasdaq up 34 points (+0.75%). 

In you haven’t noticed, the market has literally flat lined since August 21st ….. going straight to heaven or perhaps hell. Depending on whom you ask.

On a more serious note, the Dow has been stuck in very tight 150 point trading range over the last 14 trading days. Either distributing or consolidating. Whatever it is, one thing is for sure. The market is storing a massive amount of energy for an upcoming move. Whichever direction that move might be.

What’s more, despite a constant bullish hype surrounding today’s market, the Dow is up a miserly 2.8% year-to-date. In other words, I continue to maintain that the Dow has been storing a massive amount of energy since December 31st, 2013.

For what purpose?

For a very powerful move ahead. If you would be interested in learning exactly when this powerful move will start (to the day) and which way the market will break…..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. September 10th, 2014 InvestWithAlex.com

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What You Ought To Know About Today’s Trading Range  Google

Why You Should Be Embarrassed Of Being Smart

daily chart Sept 9 2014

9/9/2014 – A down day with the Dow Jones down 98 points (-0.57%) and the Nasdaq down 40 points (-0.87%). 

The notion of bulls Vs. bears is an idiotic one. A smart money manager should be able to make money in both bull and bear markets. Yet, it is just as important to understand the psychological mindset of most market participants. When approached in the proper fashion, this reading will give an indication of what the future holds.

Further, over the last couple of weeks I have destroyed the notion propagated by the mainstream financial media that this is the most hated rally every. What’s more, I have shows that the number of bulls/bears is the lowers it has been in close to 30 years. Market Bears Hit The Lowest Levels Since Just Before The 1987 Crash

Despite the fact, the mainstream financial media continues to go after non existing bears with the vengeance. First they were simply stupid, then they were “Market Unbelievers” and now…….get this…..‘Embarrassed’ bears will be forced into stocks: Pro That right, ladies and gentlemen, the best researched market participants will be so EMBARRASSED that they will be forced into buying stocks.

Who cares? No one, but this is an important psychological factor that clearly points to where this market is heading. When bulls have to shame bears into buying stocks, only one thing is certain, the end is near.  

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. September 8th, 2014 InvestWithAlex.com

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Why You Should Be Embarrassed Of Being Smart Google