12/15/2014 – Another down day with the Dow Jones down 101 points (-0.58%) and the Nasdaq down 48 points (-1.04%).
The stock market continues to perform just as anticipated. Not only did InvestWithAlex timed/priced the exact top at 17,991 with appropriate positioning, we have a fairly good idea of what happens next Click Here to find out.
Now, when Bill Gross talks, particularly about the bond market, you better listen. Everyone is trying to squeeze through a very small door. Also, you if haven’t noticed the 10-Year Note continues to sell off and is now quickly approaching October lows. A huge red flag for the stock market considering today’s valuation levels.
“When levered money moves and tries to seek a safe haven, basically you have violent price movements,” Gross said, adding there is “very little liquidity” in the corporate bond markets, especially in high-yield debt. “Everyone is trying to squeeze through a very small door.”
I tend to agree with Bill, when the s&*# finally hits the fan you will see liquidity dry up overnight. Just as it did back in 2008. And that applies not only to the overall corporate bond market, but to the short-side and the stock market in particular. Don’t forget, we are at historic margin debt level highs and everyone is long “Apple”. In other words, when this stock market finally breaks, good luck finding anyone to buy your shares.
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 15th, 2014 InvestWithAlex.com
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Bill Gross: No Bond Liquidity. Is Another 2008 Credit Crunch Coming? Google