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Weekly Stock Market Update & Forecast. June 14th, 2014. InvestWithAlex.com

daily chart June 13 2014

 Weekly Update & Summary: June 14th, 2014

A negative week with the Dow Jones down 149 points (-0.88%) and the Nasdaq down 11 points (-0.25%). Most markets left a fairly large up gap on June 11th while closing a down gap left over from June 6th. Suggesting a possible bounce.

However, we continue to have a number of down gaps, the one on May 27th, two large gaps on May 21st/23rd and two large gaps on April 14th/16th. Indicating an eventual correction. Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

 Does The Russell 2000 Suggests An Upcoming Collapse?

russell 2000 head and shoulder

About a week ago I talked about a possible Head & Shoulders pattern developing on the Nasdaq. While that pattern is somewhat in question, the Russell 2000 is now building its own. The last time it happened back in 2010 the Russell collapsed 27%.

But the technicals may be signaling a huge drop ahead, according to Richard Ross, global technical strategist at Auerbach Grayson. “I don’t like the small caps,” said Ross, a “Talking Numbers” contributor. “I’m a seller of the Russell 2000. In fact, full disclosure, I’m short the Russell in my personal account.”

The main question here is…… are the Dow & the S&P leading the market higher or are the Nasdaq & the Russell 2000 showing the early warning signs for what is to come in the overall market?

Over the last few months I have covered extensively why the stock market is approaching a top from both the fundamental/technical and the mathematical/timing fronts. It just might very well be that the more speculative indices will lead all markets lower. To start the bear market of 2014-2017.  One thing is for sure, I would watch the Russell 2000 very carefully. If the Head & Shoulders develops as anticipates it would spell the impeding doom for the overall market.


 What You Ought To Know About Today’s Massive Financial Bubble

A few days ago I have talked about Uber, their massive VC round at $18 Billion valuation level and what that means. Yesterday, the fools at The New York Times have argued…. “Why Uber Might Well Be Worth $18 Billion”

Think about the basic math. There are a lot of numbers floating around about the global revenue for taxis, but here are the basics: In the United States, the taxi business generates $11 billion annually, according to IBISWorld.

In big cities like New York and London, The Financial Times reports that the average person spends $238 a year on taxis. If you extrapolate that Uber could one day control a quarter of the current global taxi market, the investment would turn out to be a home run. The business is currently in 128 cities in 37 countries and says it is doubling its revenue every six months. (TechCrunch reported Uber’s revenue last year was $213 million on more than $1 billion of bookings; Uber takes a 20 percent cut of all driver’s receipts.)

This is the basic rationale of all start ups and idiot investors who believe them. “If we only get 2% of the market we will make a Trillion Dollars”. Unfortunately, I have never seen this pipe in the sky dream come to a fruition. So, why is Uber, a company with $213 Million in revenue and net losses is valued at more than Hertz Global Holdings Inc, Best Buy Co, Alcoa or another 250 companies on the S&P 500 index?

Let me tell you why. Because we are in a massive financial and speculative bubble reminiscent of the 2000 and 2007 tops.Venture Capital and the stock market tend to sync up for the most part and the excesses (or absolute insanity) you are seeing in terms of Uber valuation levels are the direct result of the massive bubble in the stock market. Let’s just not pretend or hope, we all know what happens next.

GEOPOLITICAL & MACROECONOMIC ANALYSIS:  

This was not a good week from a geopolitical point of view. With so many conflicts happening simultaneously it certainly feels as if the world is going to hell in a hand basket. Let’s take a quick look at the three of the most important issues and see if they can impact our financial markets.

  • Ukraine/Russia/NATO/USA/EU: As I have mentioned in last week’s update this situation continues to die off. While there is an all out conflict and a mini civil war,  this issue might be on a verge of completion. With that said and as with any conflict, a quick re-escalation is always a possibility. Unfortunately, the US relationship with Russia will continue to deteriorate for as long as this administration remains in place. If the conflict dies off, there shouldn’t be any impact on our financial markets.
  • China/USA/NATO/Philippines/Vietnam/Taiwan/Japan:  China has already said, in no uncertain terms and a number of times, that it wants the US military presence out of Asia.  China will continue to flex its military muscles to try and control the entire region.  While there have been a number of incidents, thus far they have not caused any major problems. Yet, make no mistake, the pressure is building and this powder keg will explode. Sooner or later. No impact on our financial markets as of today.
  • Iraq/Syria/USA: In a stunning turn of events, various factions of Islamic militants, crazies, al-queda, etc….. have nearly completed their takeover of Iraq in a matter of day.   Given the circumstances and the reports coming out of the Iraq, it is just a matter of days before Baghdad falls and militants gain control of the entire country. No amount of “strategic bombing” by the US will prevent this. Only an invasion can and no one is willing to do that.

This is the most important issue now….. on two fronts. First, if successful, these Islamic militants will be able to use Iraq and parts of Syria as lawless land where anything and everything goes. Further destabilizing the region and having the ability to train as many terrorists as their little hearts desires. Eventually, this will come back to hunt the USA. Second, OIL & OIL money.  They might end up as the wealthiest terrorist organization ever created, destabilizing the oil markets in the process.  We must watch this situation very carefully and anticipate that it WILL have an adverse impact on our financial markets.

Bonus question. What’s the common denominator in all of the above?

TECHNICAL ANALYSIS FOR THE DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will….. 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.Weekly Stock Market Update & Forecast. May 31st, 2014. InvestWithAlex.com

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Stock Market Update & Forecast. June 14th, 2014. InvestWithAlex.com  Google

Weekly Stock Market Update & Forecast. June 7th, 2014. InvestWithAlex.com

daily chart June 6 2014

 Weekly Update & Summary: June 7th, 2014

A strong up week with the Dow Jones up 207 points (+1.24%) and the Nasdaq up 79 points (+1.86%). All markets left a large downside gap on Friday, June 6th.  That is in addition to a gap on May 27th, two large gaps on May 21st/23rd and two large gaps on April 14th/16th. Suggesting an eventual correction.

Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

The Shocking Downside Of American Real Estate Bubble 2.0

courtesy of doctorhousingbubble.com
courtesy of doctorhousingbubble.com

As Wall Street Journal reports…. Half of Americans can’t afford their house

Over half of Americans (52%) have had to make at least one major sacrifice in order to cover their rent or mortgage over the last three years, according to the “How Housing Matters Survey,” which was commissioned by the nonprofit John D. and Catherine T. MacArthur Foundation and carried out by Hart Research Associates. These sacrifices include getting a second job, deferring saving for retirement, cutting back on health care, running up credit card debt, or even moving to a less safe neighborhood or one with worse schools.

If you need someone to blame I have got a few people for you. You can start with Greenspan, Bernanke, Yellen, Clinton, Bush, Obama and everyone in the US Congress/Senate over the last 20 years. All of them were, more or less, directly responsible for perpetrating this massive financial crime against the American people.

While you might have enjoyed your house going up in value 500% over the last 15 years you will not enjoy what happens next. As the chart above illustrate, the “Dead Cat Bounce” in real estate prices is almost over and the market is rolling over. As predicted here, Real Estate Collapse 2.0 Why, How & When  the real estate market is about to suffer a massive Stage #3 correction. By the time it’s over, most Americans should be able to afford a house…again. I can’t wait.


Is Gold Dead Or Is It Bottoming?

Gold vs stocks

According to most market pundits, Gold is dead and you should buy stocks and real estate.

Gold is hitting new multiyear lows relative to the Standard & Poor’s 500 Index. J.C. Parets, a technical analyst at Eagle Bay Capital, notes: “This downtrend has been very strong over the past 30 months and is hard to fight.”

Yes, Gold is in a technical downtrend, likely to test $1,200 (maybe even lower) and the time to buy it is not quite here. Yet, to look at it from such a perspective is like looking in a rear view mirror.

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

All you have to do now is wait for Gold to bottom, break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.    


Peter Schiff Capitulates: Are Markets About To Collapse?

Peter Schiff, one of the most “in your face” perma bears has basically capitulated. After years of predicting US Equity market collapse, appearing on various TV/Radio shows and writing a few books on the subject matter, Peter now believes the FED will be able to delay any such collapse…..  “The air is already coming out of the bubble” but Fed can delay collapse: Peter Schiff

A contrary indicator? 

You bet. Listen, Peter Schiff is a very intelligent man. Yet, one of the hardest things out there is to be a bear in an ever increasing bull market. Even though your research might be right, your timing might be off by as much as a few years. And the market makes you pay for it by making you look like an absolute idiot. I had the privilege of experiencing this in 2006-2007 when my call for 2008 collapse was a few years early.

This is something that all investors should be aware of. I call it an emotional detachment from a proposed outcome. While it is important to have a very well researched position, it is even more important to be able to change your view when need be. Very few people can do that and that is why most people buy at the top and sell at the bottom. Unfortunately, Mr. Schiff is giving up at exactly the wrong time.

MACROECONOMIC ANALYSIS:  

I am just as tired of this as you are, but Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue.

On a positive note, despite heavy fighting in East Ukraine it appears the situation is starting to die off. The upcoming week is critical. There is a real possibility the situation will work itself out and disappear from the international stage.  At the same time and as in any conflict, the situation might re-escalate quickly.

Further, I no longer believe that Russia will get involved in this conflict directly. There is just too much downside and not enough to gain for Russia to get militarily involved in East Ukraine at this stage. Basically, the next few weeks will tell us if the situation dies off or re-escalates. Let’s hope for the latter.

TECHNICAL ANALYSIS FOR THE DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will….. 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

Weekly Stock Market Update & Forecast. May 17th, 2014. InvestWithAlex.com

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.Weekly Stock Market Update & Forecast. May 31st, 2014. InvestWithAlex.com

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Stock Market Update & Forecast. June 7th, 2014. InvestWithAlex.com Google

Weekly Stock Market Update & Forecast. May 31st, 2014. InvestWithAlex.com

daily chart May 30 2014

 Weekly Update & Summary: May 31st, 2014

A strong up week with the Dow Jones up 111 points (+0.67%) and the Nasdaq up 57 points (+1.36%). While the Dow remained within its tight trading range, the Nasdaq continued to display strong divergence on low volume. Short covering in “High Flyers” continues to be the most likely culprit.

All markets left a large downside gap on May 27th. That is in addition to the two large downside gaps on May 21st/23rd and another two large downside gaps on  April 14th/16th. Indicating an eventual correction.

Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

Stock Market Breadth Continues To Deteriorate

stock market breadth

As we continue our look at how out of touch with reality the stock market is, it is time to look at deteriorating market internals. Even though the indices are up and hitting all time highs very few stocks are following.

For instance, for the S&P on a monthly daily average only 26 companies are making 52-week highs. That number was as high as 200 just a little over a year ago. Or the market went from 1 out of about 2.5 stocks making new highs to 1 in 20.

In other words, fewer stocks making all time highs while major indices push higher mask a huge underlying issues known as market breadth. While not a significant issue in itself, when we combine it with today’s extreme overvaluation levels, rampant speculation, too much credit, VIX getting close to an all time low and seasonal/cyclical factors……..it becomes yet another warning sign.

As such, major indices setting in new highs is nothing more than a beautiful mirage. 


How Long Before Corporate America Destroys The NSA?

The sooner the better. Yesterday, China’s Government started instructing Chinese banks and other financial institutions to replace US made IMB servers with their Chinese made counterparts due to the fears of spying. IBM Faces Further Trouble in ChinaRightfully so….

How long before other countries and businesses follow? Not very long.  No one wants to be spied on and that is exactly what you are getting when you buy any sort of technology from the US today. Courtesy of the Obama Administration and the NSA.

Basically, it won’t be long before American corporation will see billions in revenue vanish into thin air. It’s already happening. I truly hope that the backlash against the US Government from these corporate interest is so strong that it utterly guts or destroys the NSA. While that might be wishful thinking on my part, this is the only was the NSA monster can be destroyed at this juncture as most American continue to be more interested in who wins the American Idol as opposed to their freedoms or privacy.


Are Bond Vigilantes Buying Bonds?

Yield Curve as of 2014-05-26

As yields continue to decline and as the yield curve continues to compress, BusinessWeek asks Where Are The Bond Vigilantes

In fact, Bloomberg News reports, there is “deepening concern among bond investors that tepid wage growth and a lack of inflation will persist for years to come.” The story quotes Margaret Kerins, the Chicago-based head of fixed-income strategy at Bank of Montreal: “Potential growth is a huge determinant of that long-term rate and most people are buying into the idea of lower potential growth.

I think this is the most significant story no one is talking about. While most people believe yields are heading lower due to the lack of inflation, slower growth or simply because the bond market has gone crazy, I do not share in their optimism.

 Here is why the yields are going down and the yield curve is compressing. 

  1. The bond market is starting to see a severe recession and a bear market within the US Economy. Our mathematical and timing work confirms the same. Showing a significant recession and a bear market between 2014-2017. 
  2. Typically, 30-year bear markets in yield do not end in a V shape form. When such long moves complete they often set a secondary bottom (at least). This fits well within our overall economic forecast as we anticipate yields to set a secondary bottom over the next 2-3 years. In 2016 to be exact.
  3. There are a number of open gaps leading all the way down to 1.5-1.6% on a 10-Year Note. Again, it is highly probable yields will go there over the next 2-3 years.

When we put all of this together, it becomes evident that the US Economy and the US Stock Market are in real trouble going forward.

MACROECONOMIC ANALYSIS:  

I am just as tired of this as you are, but Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe that things will escalate significantly over the next few weeks.

Over the weekend, Petro Poroshenko has won a landslide victory to become Ukraine’s next president.  Knows as Ukraine’s “Chocolate King” and dubbed as a “pro-west” Entrepreneur by the Western Media, Poroshenko is anything but that.

If you take a closer look……organized crime, extortion, prostitution and arms trafficking would take up at least 70% of his resume. Yet, to the Western Media he is just another outstanding citizen the Obama Administration is keen on supporting. Unfortunately, no one becomes a billionaire in that part of the world through the same channels available in the West.  After years of doing business in Russia I can attest to that.

The next two weeks become incredibly important. Poroshenko will either gain complete control in Ukraine through the use of force or an all out civil war will break out. If an all out civil war becomes a reality, it is still possible that Russia intervenes militarily to “protect” East Ukraine and ethnic Russians.

As you can imagine this situation will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  It is highly probable that this would be incredibly unsettling for financial markets.  I can tell you one thing, most markets do not have this priced in. The upcoming week is critical.

TECHNICAL ANALYSIS FOR THE DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will….. 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

Weekly Stock Market Update & Forecast. May 17th, 2014. InvestWithAlex.com

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.Weekly Stock Market Update & Forecast. May 31st, 2014. InvestWithAlex.com

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Stock Market Update & Forecast. May 31st, 2014. InvestWithAlex.com Google

Weekly Stock Market Update & Forecast. May 24th, 2014. InvestWithAlex.com

daily chart May 23 2014

 Weekly Update & Summary: May 24th, 2014

A strong up week with the Dow Jones up 115 points (0.70%) and the Nasdaq up 95 points (+2.33%). While the Dow and the S&P remained within their tight trading range, the Nasdaq displayed a strong divergence and a short-term trend shift by surging higher on low volume. Short covering in “High Flyers” was the most likely culprit.

The Dow left two large gaps on the downside this week (May 21st/23rd). That is in addition to two other large downside gaps on  April 14th and on April 16th. Indicating an eventual correction.

Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

A Closer Look At VIX And What It Predicts

volatility and market

VIX, often referred to as the fear index, continues to decline to levels unseen since the 2007 or right before the collapse. While most market pundits dismiss this measure as a simple volatility gauge, it would pay big dividends to pay closer attention. Here is why.

  1. Historic Lows Indicate Trend Reversal: Historically, when VIX approaches historic lows it tends to reverse shortly thereafter, typically leading to massive sell offs synonymous with 1987, 2000, 2007, etc…. Suggesting today’s environment is very dangerous.
  2. Shows Complacency & Excessive Risk Taking: I continue to maintain that the amount of risk taking in our financial system is off the charts. Although it is hard to see due to “Asset Inflation” and “Massive Stimulus”..… it is there. Plus, with most speculators being in a comfortable and soothing state of sleep (due to lack of volatility), a sharp bear market move here might snap everyone back to reality.
  3. Combining VIX, Cycle Work, Seasonality and Fundamentals: While looking at VIX alone won’t allow you to predict anything, combining it with other measures can give you a fairly accurate picture of what is to come. With market internals deteriorating, 5-Year cycle now complete, “sell in may and go away”  and extreme levels of fundamental overvaluation/speculation, VIX suggests a violent move.

Conclusion: Considering all of the above and with VIX at $11.77, this is a clear recipe for a disaster. The only question is when. If you would be interested in learning exactly when this bear market will start (to the day) and its subsequent internal composition, please CLICK HERE


 Russia and China Sign A Historic $400Bn Gas Deal. EU Freaks Out.

Russia China Pipeline Investwithalex

Mr. Putin just became a whole lot richer as Russia Signs $400 Billion Gas Deal After Decade of Talks

Infrastructure investment from both sides will be more than $70 billion and will be the world’s largest construction project, with Russia providing $55 billion up front and China $22 billion. This is Gazprom’s biggest contract to date.

While the gas deal itself is historic, the geopolitical ramifications of this deal are much more important.

First, it will allow Russia and Putin (who will rule Russia for as long as he wants) to diversify away from the EU.  The next time either the EU or the US will threaten Russia with NATO, war or sanctions they might very quickly find their gas turned off and their economies collapsed.

More importantly, as the US continues to poke both Russia and China with their “freedom and god given righteousness” stick, Russia and China continue to form much closer ties. Such close ties will eventually turn into a military alliance to counterbalance NATO (aka the US Industrial Military Complex) in South East Asia and in Europe. Just as predicted in my report here…Nuclear World War 3 Is Coming Soon.When, How & Why


 Scientists Convert Light To Matter. Amazing.

Scientists in London have been successful in converting light to matter with powerful lasers. Scientists find way to turn light into matter

“What was so surprising to us was the discovery of how we can create matter directly from light using the technology that we have today in the UK. As we are theorists we are now talking to others who can use our ideas to undertake this landmark experiment,” Rose continued.

What does any of this have to do with the stock market? …… Everything. 

While most people believe the stock market is random, volatile and unpredictable, it is anything but that. Everything in our Universe (or our dimension) functions according to a certain set of fixed laws. As Albert Einstein so famously said, “God doesn’t play dice”. Meaning, the only randomness in the Universe are the things we do not yet understand.

I use a lot of physics, mathematics and other sciences in my stock market work. Once you infuse structure and proper scientific tools into the study of the stock market (or individual stocks), most randomness disappears.  Instead, you begin to see a beautiful structure within the stock market. Once that structure is understood the market can be predicted with astonishing accuracy.

Just as the scientists above were able to convert light into matter, you can convert this understanding into a life long pursuit of wisdom.  Here is a hint…..the stock market is a life entity (not some dead chart) that moves in multi-dimensional space and according to its own DNA sequence. 

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe that things will escalate significantly over the next few weeks.

Ukraine’s election this weekend is incredibly important.  If Ukraine decides to vote West we can anticipate Ukraine’s interim government to move forward with closer ties and a possible NATO integration.  That’s a big NO NO for Russia and we will see Putin exercise his power.

While Putin said that he will respect the vote, allowing NATO troops into Ukraine would be a disastrous defeat for Russia and I don’t believe Putin will allow that to happen.  His speech at the economic forum earlier today was a clear sign that the relationship between Russia and the US is at a breaking point. What happens over the next two weeks really depends on how far both Russia and the US will want to push the envelope.

As suggested before, any provocation from either side will explode this situation into an all out war.  We are already getting indications that East Ukraine is mobilizing (with the help of Russia) to fight Ukraine’s federal forces/army.  If the situation escalates any further, it might give Russia the pre-text needed to enter Ukraine in order to “defend” its new territory and its people.

As you can imagine this situation will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  It is highly probable that this would be incredibly unsettling for financial markets.  I can tell you one thing, most markets do not have this priced in. The upcoming week is critical.

TECHNICAL ANALYSIS FOR THE DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will….. 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

Weekly Stock Market Update & Forecast. May 17th, 2014. InvestWithAlex.com

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.Weekly Stock Market Update & Forecast. May 24th, 2014. InvestWithAlex.com 

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Stock Market Update & Forecast. May 17th, 2014. InvestWithAlex.com

daily chart May 16 2014

 Weekly Update & Summary: May 17th, 2014

A mixed week with the Dow Jones losing 92 points (-0.55%) and the Nasdaq gaining 18 points (+0.46%). The number of divergences and market undercurrents continue to increase.

The Dow left two gaps on the upside this week (May 14th/15th), suggesting a near term bounce. However, to complicate things even further the Dow continues to have two near term gaps on the downside, the one on April 14th and a large gap on April 16th. Indicating an eventual correction.

Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

Shocking: Unprecedented Amount Of Risk In Our Financial System

The amount of risk in our financial system and within our financial markets today is truly unprecedented. It is equivalent to sitting on a barrel of TNT with a fuse lit. With the stock market sitting at an all time high, VIX scrapping the bottom of its trading range, FED tightening and non-existing credit spreads…….this mess is about to blow sky high.

These two charts should drive the point home.

VIX

credit spread investwithalex

What these charts are suggesting is further confirmed by our mathematical and timing work. Again, our work shows a severe bear market between 2014-2017. 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 exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE


 Will Gold Break Below $1,000 As Jim Rogers Suggests?

gold chart investwithalex

Typically I would agree with Jim, but not here. While gold can certainly break down to that level, it has very little time left to do it in.

As I have mention before, my mathematical and timing work shows a clearly defined bear market and a severe recession within the US Economy between 2014-2017. When we look at gold from that vantage point we can anticipate the following setup for the metal this time next year (May 2015)….

  • The stock market is down 15-20%.
  • The US Economy is in an official recession.
  • The 10-Year Note is below 2%.
  • The FED is looking to stimulate or re-inflate markets in any way possible. All tightening talk is nothing but a distant memory.

With gold showing signs of building a base/bottoming and with the fundamental setup being identical to the one in 2007 (when gold went from $600 to $1,800) the probability is very high that Gold is getting ready to rally here.

Point being, for gold to decline to $1,000, it must do so immediately or over the next 3-4 months (maximum). That is why I continue to believe that the probability of gold breaking above $1,420 and surging higher thereafter is much higher at this juncture


 10-Year Treasury Note Screams Out “Recession Ahead”. Are You Listening?

On January 1st, 2014 I started heavy buying of a 10-Year Treasury Note. With most people at the time thinking I was on a crack cocaine binge, thus far, the bet has paid off handsomely.

10-Year Note

More importantly, the 10-Year Note broke a significant support level today at around 2.55%. I continue to maintain that the 10-Year Note is one of the better investments over the next few years or until downside targets are achieved. Here is why….

Generally speaking, the BOND Market is more intelligent. Yields breaking down is indicative of what the bond market sees. What does it see? A significant recession and a possible bear market. That view is very much in line with our overall forecast and our mathematical/timing work predicting a severe bear market/recession within the US Economy between 2014-2017.

In addition, 30-Year bear markets in Bond Yields DO NOT end in a V shape fashion. Typically there is a double or tripple bottom. Finally, there is a number of large gaps in the 10-Year treasury, suggesting that the bond market will retest it’s 2012 and 2013 yield lows. Possibly taking the market as low as 1.5-1.6% in yield.

Impossible? On the contrary and that’s exactly what my extremely accurate mathematical work shows.

As the saying goes, money talks and bullshit walks. Well, the money in the Treasury Market is talking. The only question is…… Are You Listening?

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe that things will escalate significantly over the next few weeks.

As discussed in last week’s update,  May 11th referendum in East Ukraine was an overwhelming victory for Pro-Russian forces.   As predicted, shortly after declaring independence they have asked to be a part of Russia. Thus far, without a response.  Further and as expected,  neither Ukraine nor the West recognize any of this as legitimate.

Next week Ukraine will hold its own elections. While the West is expected to recognize the results, Russia will not.  Bringing us all back into a stalemate.

What happens over the next two weeks really depends on how far both Russia and the US will want to push the envelope.  As before, any provocation from either side will explode this situation into an all out war.  We are already getting indications that East Ukraine is mobilizing (with the help of Russia) to fight Ukraine’s federal forces/army.  If the situation escalates any further, it might give Russia the pre-text needed to enter Ukraine in order to “defend” its new territory and its people.

As you can imagine this situation will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  It is highly probable that this would be incredibly unsettling for financial markets.  I can tell you one thing, most markets do not have this priced in. The upcoming week is critical.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will….. 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

Weekly Stock Market Update & Forecast. May 17th, 2014. InvestWithAlex.com

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Weekly Stock Market Update & Forecast. May 10th, 2014. InvestWithAlex.com

daily chart May 9 2014

Weekly Update & Summary: May 10th, 2014

For the week the Dow Jones gained 70 points (+0.43%) and the Nasdaq lost 52 points (-1.26%). The number of divergences and market undercurrents continue to increase. While the Dow did very well structurally, it continues to have two near term gaps to the downside, the one on April 14th and a large gap on April 16th. Indicating an upcoming correction. Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below). 

WEEKLY REVIEW:

Why You Should Invest All Of Your Money In Cash. Hint….You Will Make A Killing.

Recently, I have been telling all of my friends and relatives to save and/or accumulate as much cash as they can. Better yet, to keep putting it in a 10-Year note.  Assuming that they don’t actively invest/speculate in the stock market.

Stupidest investment advice ever? 

Not when you are accumulating cash in order to raid the stock market at the bottom. AKA….to bathe in the blood of others. In fact, I gave the same advice in 2006-2007 or right before the collapse. Here is what happens when you accumulate cash right before or during the bear market.

First, you tend to avoid a bear market decline and losses of 30-50%. Second, you have the capital to come in at the bottom (ex: 2009) and buy the market/stocks at give away prices. Minimizing risk and maximizing gains in the subsequent bull market. Making cash one of the better investments today (because of a 2014-2017 bear market).Marc Faber tends to agree.


 What You Ought To Know About The Upcoming Gold Rally. This Is Incredible.

According to a consultancy out of London you should sell your Gold and seriously consider buying some Twitter stock.

“Gold prices have probably peaked this year and could sink to their lowest since 2010 at $1,100 an ounce as the U.S. economic recovery gathers pace, consultancy Metals Focus said on Wednesday.”

Yeah, the US economic recovery gathers pace as it goes right over a cliff. 

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

gold investwithalex

All you have to do now is wait for Gold to break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.    


Is It Time To Short Homebuilders? This Answer Might Surprise You

According to Jeffrey Gundlach, chief executive and chief investment officer of DoubleLine Capital, it is time.

“Investors should bet against the SPDR S&P Homebuilders ETF because he does not see the expected rebound in single-family housing occurring”

We like the idea as this ETF is likely to yield about a 50% return on the short side over the next few years. Why? For the following reasons.

  1. As we have outlined so many times before, the housing recovery is over and the entire real estate market is about to embark on the most vicious bear leg of it’s decline. Stage 3. You can read everything you need to know about this here. Real Estate Collapse 2.0 Why, How & When
  2. Our advanced mathematical and timing work predicts a severe bear market between 2014-2017. Under such circumstances the real estate market will not be able to maintain its upward trajectory. On the contrary, it might be one of the sectors leading the market lower.
  3. SPDR S&P Homebuilders ETF (XHB) is showing early signs of a technical price breakdown.

When you combine the points the above, SPDR S&P Homebuilders ETF (XHB) becomes a very good short investment opportunity.  

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe that things will escalate significantly over the next few weeks.  

It appears that Mr. Putin’s game plan is clearing up. It is highly probable that he will wait for a referendum scheduled for this Sunday, May 11th. It is widely expected that Pro-Russian population in East Ukraine will declare independence or become autonomous and then in one form or another will ask to join Russia. Essentially it’s the same game plan as what had happened in Crimea.  No shots fired, no invasion and Russia regains complete control of East Ukraine.  A great strategy.

The fun starts when Ukraine’s interim government (under the direction of the US, the EU and NATO) refuses to let East Ukraine go (which they will). This should give Russia the pre-text needed to enter Ukraine in order to “defend” its new territory and its people.

As you can imagine this situation will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  It is highly probable that this would be incredibly unsettling for financial markets.  I can tell you one thing, the markets do not have this priced in. The upcoming week is critical.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

It’s going to be a long one.

First, a re-cap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will 

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Click here to subscribe to my mailing list

 

Weekly Stock Market Update & Forecast. May 10th, 2014. InvestWithAlex.com Google

Weekly Stock Market Update & Forecast. May 3rd, 2014. InvestWithAlex.com

daily chart May 2 2014

Weekly Update & Summary: May 3rd, 2014

For the week the Dow gained 151 points (+0.93%) and the Nasdaq gained 48 points (+1.19%). As suggested in last week’s update, the market came back to close the gap that was opened up on April 25th. While the Dow did very well structurally this week, it continues to have two near term gaps to the downside, the one on April 14th and a large gap on April 16th. Indicating an upcoming correction. Further, there are a number of smaller gaps left leading all the way down to February 5th low.  We continue to believe that the Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

GDP Growth Collapses. Is The US Economy In A Recession Already?

We have argued, for quite some time, that the US Economy and/or economic growth is a giant Ponzi scheme perpetuated by careless FED policies and massive credit/liquidity infusion into our financial system. 

Take that ocean of liquidity away and you will something very ugly swimming underneath. With most of that liquidity going directly to speculation and driving most asset classes into bubble level valuations, today’s GDP growth number of +0.1% is quite shocking. Even for me.

GDP Slows to Crawl in First Quarter, Up 0.1% (Vs 1.2% growth consensus)

GDP Growth Investwithalex

Understandably, most economists will blame the weather and baby Jesus for the miss, but the story goes deeper than that.  According to some GDP observers the GDP growth would have been Negative 1.0% if it wasn’t for a temporary, government mandated and massive spending triggered by Obamacare.

Wait what?!?!….Are we in a recession already?

That in itself is irrelevant. What is relevant is that the stock market is sitting at an all time highs, the FED is talking about further tightening and you are most likely fully invested in the stock market. That is what’s really important.

Further, our mathematical and timing work confirms the notions above.Liquidity party or not, it shows a severe recession within the US Economy between 2014-2017. In the past, I have argued that we will be in “an official recession” by the end of 2014 or in Q1 of 2015. By the looks of it might happen faster than I thought.

Again, the FED will be forced to keep this liquidity party going while looking at new ways to re-inflate and stabilize the markets when the bear market of 2014-2017 kicks in. Expect a flat yield curve and much lower equity prices over the next few months/years. If you would be interested in learning exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE


 Will Corporate Earnings Drive Stocks Higher? Don’t Bet On It.

Breakout makes a compelling case that corporate earnings will continue to drive stock prices higher for the foreseeable future.

“Companies are getting incremental gains from revenue, holding the line on expenses, so at the end of the day we’re likely to see modest gain in earnings for the quarter, somewhere maybe around 5%,the economy here is going to reaccelerate ”

One big problem. Today’s earnings are an illusion at best driven by artificial credit infusion into our Economy by the FED. In fact, based on our rough calculations……if you take out the QE and other stimulus out of the corporate earnings equation, the S&P P/E ratio zooms up from about 18 today to 50 – 70 it really is. Making today’s market not only incredibly expensive (by any historical measure), but “are you f&#*ing kidding me” expensive.

s&p ratio

That is exactly what the vast majority of today’s investors (professional or not) miss. We have faced the exact same situation in 2007-2009 collapse when the P/E ratio zoomed up from about 20 at 2007 top to 128 in 2008 as supposed corporate earnings vanished into thin air. Expect the same thing to happen today as the bear market/recession of 2014-2017 show their ugly face and corporate earnings vanish once again.


What Today’s Job Report Shows About The Future Of The US Economy Is Shockingly Scary.

Here is what we got.

  • 288K new jobs added in April, far higher than 218K expected.
  • The unemployment rate tumbled down to 6.3% from 6.7%.
  • Labor participation rate collapsed from 63.2% to 62.8%

That’s great…..right? Not so fast there sparky.  If there was ever a fundamental setup for a massive bear market to start, we got it today. Think about it the following way.

As Janet Yellen has suggested on a number of occasions, jobs or job creation is her primary concern. Today’s job report validates her view that the US Economy is recovering at a good clip and that full employment is just around the corner. As such, further monetary tightening is now a certainty.  Yet, the reality is quite different……

  • Incredibly overpriced financial markets and most other asset classes.
  • Extreme levels of speculation driven by cheap money and FED printing.
  • An economy and a financial market environment that is entirely dependent on cheap credit and/or stimulus.
  • Technically negative GDP growth and slowing economy.

Job creation is a lagging indicator. As I suggested a number of times before, the worst thing the FED can do right now is tighten further.  I hate going back to 2007, but the “fundamental” setup we face today is identical to the one we have faced at 2007 top. Jobs were plentiful, markets were in extreme overvaluation and the FED was tightening. It was not until the mid 2008 (or well after the stock market peaked in October of 2007) that the unemployment rate started surging higher. Expect the same thing to happen now.

unemployment rate 3 investwithalex

Our mathematical and timing work confirms this notion. It shows a severe bear market between 2014-2017. 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 exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe that things will escalate significantly over the next few weeks.

As I write this (on Friday night), the situation in Ukraine is critical. 31 people die after radicals set Trade Unions House on fire in Ukraine’s Odessa  In short, we are witnessing the start of a civil war.  At this stage only one question remains. Will this be enough for Putin to go in and put a stop to all of this nonsense instigated by the US/NATO/EU ….-OR-…. will Putin play some sort of a long term strategic game against the West that very few of us are aware of? To be honest with you, I have no idea as this has become a very complex matter.  If I had to guess, if the civil war in Ukraine escalates over the next few days you will see the Russian Army invade, very quickly decimate any opposition and re-install Pro-Russian government.

This would be the best possible outcome for the Ukrainian people.  Unfortunately, such a move by Russia will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  As you can imagine, this would be incredibly unsettling for financial markets.  I can tell you one thing, the market does not have this event priced in. The upcoming week is critical.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last few months. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next turning point is located at……

Date: XXXX 
Price: XXXX

TRADING: 

I am now fully committed to the XXXX side of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Click here to subscribe to my mailing list

 

Weekly Stock Market Update & Forecast. May 3rd, 2014. InvestWithAlex.com Google

Weekly Stock Market Update & Forecast. April 26th, 2014. InvestWithAlex.com

daily chart April 25 2014

Weekly Update & Summary: April 26th, 2014

With a substantial decline on Friday, the Dow Jones lost 47 points (-0.29%) and the Nasdaq lost 20 points (-0.49%) for the week. Structurally, all markets have opened up a large gap this Friday. Suggesting a near term upswing to close it. While the short-term upswing is probable, the Dow continues to have two near term gaps to the downside, the one on April 14th and a large gap on April 16th. Indicating an upcoming correction. Further, there are a number of smaller gaps left leading all the way down to February 5th low.  The Dow will close such gaps when the next bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

100% Of Economists Agree Yields Will Rise.
What That Means Should Send Chills Down Your Spine

As you know, I have very little (if any) respect for economists. It’s a worthless profession where they tend to do more harm than good (Greenspan, Bernanke, Yellen).Plus, things they do have very little application in the real world. Let me put it this way……if the economists knew what they were talking about they would be making millions on Wall Street instead of arguing if the GDP growth of Zimbabwe will be 2.6% or 2.9% in the year 2019.

However, when 100% of surveyed economists expect yields to rise you better perk up and pay attention. From a contrarian point of view.  In Bloomberg’s recently conducted survey, 67 out of 67 Economists expect interest rates to rise over the next 6 months. In other words, they expect continued economic growth and an eventual tightening by the FED.

10 Year Note Chart

That flies in the face of our forecast. In the past I have shown that we expect yields to fall and the yield curve to flatten as the US Economy falls into a severe recession between 2014-2017 What Does The Yield Curve Yield?  In fact, over the next 12 months the FED will be looking for ways to stimulate the economy and to print, instead of tightening. As far as I am concerned, 100% of the economists agreeing on the opposite is a direct validation of that view.

Don’t forget, our mathematical and timing work shows a severe bear market between 2014-2017. When it begins to develop, it is only rational that yields decline.

Tech Bubble 2.0 Is Here: Why High Flyers Will Collapse
To The Tune Of 70-90%. Scary!

David Einhorn of Greenlight Capital certainly thinks so…… 

“Now there is a clear consensus that we are witnessing our second tech bubble in 15 years. What is uncertain is how much further the bubble can expand, and what might pop it. The current bubble is an echo of the previous tech bubble, but with fewer large capitalization stocks and much less public enthusiasm,” The firm said it was shorting a group of undisclosed “high-flying momentum stocks.”

We have maintained the same view for quite some time now. With unprecedented level of speculation, overvaluation, FED printing, IPO insanity and asset price inflation, today’s fundamental situation is not that dissimilar to 2007 top.  And while Mr. Einhorn is not particularly sure about the timing, we are.

The upcoming collapse in high flying tech specs will unfold in short order as our mathematical and timing work indicates. Again, our work shows a severe bear market between 2014-2017. When it starts it will very quickly retrace most of the gains accrued over the last few years.

New Home Sales Plunge. Why The Upcoming Real Estate Crash Will Be Much Worse Than The 2006-2010 Decline

As per the Commerce Department report released earlier today new home sales have collapsed 14.5% to an eight month low.  While industry insiders blame everything from unusually cold weather to baby Jesus for this catastrophic drop, the reality is quite simple. The real estate market is slowly rolling over into a massive bear leg (stage 3) after it’s “dead cat” bounce between (2010-2014). I have outlined all of this in my comprehensive report dating back to October of 2013. Real Estate Collapse 2.0 Why, How & When Thus far, it’s playing out exactly as I predicted.

Here is what most people don’t get. Secular bear markets do not move in straight lines nor do they move fast. Just as bear/bull cycles in the stock markets last 17/18 years, same applies to the real estate cycles.

  • Real Estate Bull Market: Arguably, the US real estate boom began at 1991 recession bottom. It lasted until 2006/07 top or 17 years. Stock market equivalent: 1982-2000 bull market.
  • Stage 1 – Initial Bear Market Leg In Real Estate. 2007-2010 (3 years). Nationwide, prices declined 20-40%. Stock market equivalent: 2000-2003 Bear Market. The Dow declined  about 40%.
  • Stage 2 – Real Estate Bounce.  Also known as the “Dead Cat” bounce 2010-2014 (4 years). Stock market equivalent 2003-2007 bull market.
  • State 3 – Real Estate Collapse:  2014-2017. Stage 3 collapses are notoriously sharp, fast and very nasty. The stock market equivalent would be the bear market of 2007-2009 when the Dow lost 56% of it’s value in 18 months.

Conclusion: While the analysis above is fairly simplistic, it is also extremely accurate when we take our mathematical, timing and cycle work into consideration. The analysis above clearly indicates that the real estate market/sector is about to eat dirt in a massive and a severe Stage 3 decline. This is further confirmed by the undying love for Real Estate in today’s American culture.

Remember, before any bear market terminates itself any sense of “love for an asset class” must be crushed out of the prevailing culture. I am afraid we are at least a decade away from that point when it comes to the American Real Estate.

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe things will escalate significantly over the next few weeks.

As predicted in last week’s report, Geneva Accord  did not hold up. As of today, it is nothing but a distant memory for all involved.  I continue to believe the US/NATO, Ukraine’s Interim Government, Pro-Russian Movement In the East Ukraine and Russia are one spark away from reigniting this conflict and going at each other on multiple levels.  While I don’t believe NATO and Russia will get involved into a direct military conflict (for the time being), any misstep here by either side might lead to Russia invading East Ukraine. In fact, I continue to believe it is just a matter of time. Such a move by Russia will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  As you can imagine, this would be incredibly unsettling for financial markets.  The upcoming week is critical.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last two weeks. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term trend remains positive for the time being. The Dow would have to break below 16,000 for the short-term trend to shift from positive to negative.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

In conclusion, xxxx

Longer-Term Overview:

The next long-term turning point is located at

Date: XXXX
Price: XXXX

XXXX

Trading:

I am now fully committed to the xxxx of the market with 11 individual positions taken at the prices outlined below. A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I will be updating you of any changes or anticipated changes before they take place.

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
xxxx xxxx xxxx 91
xxxx xxxx xxxx 1250
xxxx 110 xxxx 121-123
xxxx 74 xxxx 80
xxxx xxxx xxxx 260
xxxx xxxx xxxx 460
xxxx 35 xxxx 39
xxxx 65 xxxx 70
xxxx 120 xxxx 120-130
xxxx 100 xxxx 108-112
xxxx 112 xxxx 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader:  XXXX

If No Position:  XXXX

If Long: XXXX

If Short:  XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

END OF UPDATE——–

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Click here to subscribe to my mailing list

 

Weekly Stock Market Update & Forecast. April 26th, 2014. InvestWithAlex.com  Google

Weekly Stock Market Update & Forecast. April 19th, 2014. InvestWithAlex.com

daily chart April 17 2014

Weekly Update & Summary: April 19th, 2014

In a complete reversal from last week’s loss of 386 points the Dow Jones gained 382 points (+2.38%) and the Nasdaq gained 98.78 points (+2.39%) for the week. Structurally, while the Nasdaq closed all of its gaps, the Dow left two gaps behind, on Monday the 14th and a large gap on the 16th. Indicating an upcoming correction. Further, there are a number of smaller gaps left leading all the way down to February 5th low.  The Dow will close such gaps as the bear leg develops at below mentioned time frames (please see mathematical analysis & timing section below).

WEEKLY REVIEW:

Asia’s Wealthiest Man Is Selling Everything In China. Crash Coming?

With his net worth well in excess of $30 Billion, Li Ka-Shing is the richest man in Asia.  A shrewd property investor, Li made most of his billions by investing in Chinese property market. Yet, unbeknownst to most, Li has been liquidating most of his property holdings in China since last year. With recently completed sale of Pacific Place shopping center in Beijing for $928 million, Li now has no assets of significant value left in or exposed to the Chinese market.

So, what does Li sees that has caused him enough concern to liquidate most of his holdings? 

Same thing that we have mentioned on this blog.( Where Is China’s Hidden Debt Bomb) China is on a verge of a massive credit seizure that should (in theory) collapse it’s real estate, banking, shadow banking, capital missallocationg and credit bubbles. When it does, you will see China go through a massive economic slowdown and a possible revolutionary regime change. While most people will dismiss this view as highly improbable (anticipating a soft landing at best), Asia’s richest (and arguably the smartest) man just voted with his wallet. As they say, money talks and bullshit walks.

In fact, watch Li buy his Pacific Place mall back for $100 Million within the next 5 years.

 Baltic Dry Collapses 40%. Signals Economic Slowdown.

baltic dry index is breaking down

No, Baltic Dry is not a tasty Swedish Beer.  Baltic Dry Index, a measure of sea freight prices, is now in a technical bear market.  Signaling a worldwide economic slowdown. Down 40% in just three weeks and a bone crushing 58% since it’s December 2013 top. This works well with our overall bear market of 2014-2017 forecast. But don’t worry, as mentioned earlier, according to the talking heads on TV the market has bottomed and the Nasdaq is going to 5,000. BUY, BUY, BUY. Cheers.

Janet Yellen: Bubbles? What Bubbles?

As per Bloomberg report below, Janet Yellen said nothing about the risk that her easy monetary policy will inflate asset bubbles. DUH!? What Bloomberg has missed is that we are already in a massive bubble or bubbles. While the primary bubble is singular in nature….CREDIT……adjacent bubbles are too numerous to mention here (stock market, real estate, bonds, car loans, student debt, etc…) In fact, the situation we face today is not that dissimilar to the situation we have faced at 2007 top. It is almost identical and I challenge anyone to prove me otherwise.

Is the FED aware of these bubbles while hoping for the best or are they completely blind? Unfortunately, I continue to maintain it’s the latter. As I have mentioned before, their 2008 FED Minutes is a clear indication of that. They are a reactionary force at best, only able to correct the direction after the fact. Somehow, the markets believe that the FED possesses a supernatural power to control and to direct the markets. And that is why I continue to maintain that the market participants with such a view will pay dearly for their misconception over the next few years.

MACROECONOMIC ANALYSIS: 

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe things will escalate significantly over the next few weeks.  

While things seemed to cool off and the Geneva deal was signed, I continue to believe the US/NATO, Ukraine’s Interim Government, Pro-Russian Movement In the East Ukraine and Russia are one spark away from reigniting this conflict and going at each other on multiple levels.  While I don’t believe NATO and Russia will get involved into a direct military conflict (for the time being), any misstep here by either side might lead to Russia invading East Ukraine. In fact, I continue to believe it is just a matter of time. Such a move by Russia will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  As you can imagine, this would be incredibly unsettling for financial markets.  The upcoming week is critical.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last two weeks. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term positive trend is at the risk of a reversal. If the Dow breaks below 16,000 in the upcoming week(s), short-term trend will shift from positive to negative. So, while the short-term trend remains bullish for the time being, it might be misleading as per our timing analysis discussion below.

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

First, a recap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will set a XXXX

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

…XXXX

In conclusion, our timing and mathematical work shows XXXX 

Longer-Term Overview:

Date: XXXX
Price: XXXX

Trading:

XXXX

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock Entry Point ($) Action Taken Stop Loss @
XXXX XXXX Went XXXX XXXX
XXXX XXXX Went XXXX XXXX
XXXX 110 Went XXXX 121-123
XXXX 74 Went XXXX 80
XXXX 236 Went XXXX 260
XXXX XXXX Went XXXX 460
XXXX 35 Went XXXX 39
XXXX 65 Went XXXX 70
XXXX 120 Went XXXX 120-130
XXXX 100 Went XXXX 108-112
XXXX 112 Went XXXX 120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader: XXXX.

If No Position:  XXXX

If Long: XXXX 

If Short: XXXX

CONCLUSION: 

An incredibly important week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber Section. It’s FREE to start. 

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!


Click here to subscribe to my mailing list

 

Weekly Stock Market Update & Forecast. April 19th, 2014. InvestWithAlex.com  Google

Weekly Update & Stock Market Forecast. April 12th, 2014 InvestWithAlex.com

daily chart April 11 2014

Weekly Update & Summary: April 12th, 2014

An ugly week with the Dow Jones down 386 points (-2.35%) and the Nasdaq down 128 points (-3.1%). Structurally, the market did very well by closing most of its gaps. In fact, just today the Dow finally closed the before mentioned large gap located at around 16,050. There are a number of smaller gaps left leading all the way down to February 5th low, but the Dow will close them as the bear leg develops further at below mentioned time frame. Overall, it has been a fairly clean week.

WEEKLY REVIEW:

Mortgage Origination Collapses….Real Estate To Follow

According to Black Knight, monthly origination volume was the lowest on record and down 23% month-over-month. This is wonderful in depth look into the state of today’s real estate market. Anyone who believes the real estate market will stay at these levels or move higher is smoking some good quality crack. Click Here to see this outstanding report. Here are just a few points.  

  • Origination volume is the lowest on record with prepay speeds signaling more drops in refi originations. 
  • Monthly sales were essentially flat year over year, but traditional sales were up almost 15% 
  • The government share of originations has decreased, led by a sharp drop in HARP originations 
  • Credit standards have shown few signs of loosening,  with very little origination activity in the lowest credit score bucket.  

mortgage origination

Russia Outlines It’s Economic Warfare Plans Against The USA

In no uncertain terms, Gazprom CEO Aleksander Dyukov outlined Russia’s Economic Warfare plans against the USA in case of further sanctions or any further meddling associate with Ukraine.  To summarize….

  • Fundamental Shift & Move From EU/West To Asia/India: As discussed here earlier, Russia is currently making a major push to shift it’s gas and oil markets from the West to the East by signing a number of large longer-term contracts with both China and India.  
  • Move Away From The “PetroDollar” As A Reserve Currency: To demand payments for gas and oil in Euro, Yuan, Rubble, Gold or whatever else…..as long as it is not the US Dollar. As the theory goes,  since the US is heavily reliant on it’s Reserve Currency status for it’s ability to maintain a heavy debt load, any move away from the US Dollar would collapse the US Economy.  

I don’t buy this for the time being. Any such move by Russia will have a very limited impact, if any, on the US Economy or it’s financial markets as a whole. The US Financial System is way too large, too well diversified and there are way too many international players involved in the system to destabilize it that fast. Plus, our mathematical work in the Treasury market doesn’t confirm this either. I would give this a second thought if China decides to join Russia, but such a move would be highly unlikely at this juncture.    

In short, Putin might try, but he will fail. His own economy is on the verge of a collapse and he should pay a little bit more attention to that. In fact, if the US wants to finish off Russia it should collapse the price of oil to $20-30 for about 2-3 years and you will see another 1991 type of a regime change in Russia in short order. 

FOMC Minutes Confirm Our Forecast

 yield curve investwithalex

In just released FOMC Minutes, FED Officials confirmed their dovish approach to any future interest rate increases.  According to them, “even after employment and inflation are nearly back to normal levels, short-term rates may need to stay unusually low for a while because the economy isn’t fully healthy”. 

While the market is celebrating the news for the time being, this falls in line with our overall forecast. Investors/traders must realize that the economy is running on fumes even though the interest rates are at historic lows. Further, when the economy finally rolls over into an “official” recession there is very little the FED will be able to do in order to induce further stimulus. A double whammy. 

The outcome? An upcoming bear market of 2014-2017, a severe recession, a flattening yield curve and surging gold prices. In fact, based our mathematical and timing work the bear market is just around the corner. As such, now would be a great time to protect yourself. 

MACROECONOMIC ANALYSIS:  

Ukraine/Russia/USA/EU/NATO  continue to  be the most important issue. In fact, I continue to believe things will escalate significantly over the next few weeks.  

While Ukraine interim government backed away from their 24 hour deadline on Friday, the situation remains very tense. I continue to believe the US/NATO, Ukraine’s Interim Government, Pro-Russian Movement In the East Ukraine and Russia are one spark away from reigniting this conflict and going at each other on multiple levels.  While I don’t believe NATO and Russia will get involved in a direct military conflict (for the time being), any misstep here by either side might lead to Russia invading East Ukraine. In fact, I continue to believe it is just a matter of time. Such a move by Russia will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences.  As you can imagine, this would be incredibly unsettling for financial markets.

TECHNICAL ANALYSIS THE FOR DOW JONES:  

Long-Term: The trend is still up. Market action in January-February could be viewed as a simple correction in an ongoing bull market. Same applies to the market action over the last two weeks. Yet, that in itself can be misleading as per our timing analysis discussion below.

Intermediary-Term: Since February 5th, intermediary term picture shifted from negative to positive. Giving us a technical indication that both the intermediary term and the long term trends are up. Yet, that in itself can be misleading as per our timing analysis discussion below.

Short-Term: Short-term positive trend is about to reverse. If the Dow breaks below 16,000 in the upcoming week, short-term trend will shift from positive to negative. So, while the short-term trend remains bullish for the time being, it might be misleading as per our timing analysis discussion below.  

Again, even though all 3 trends are bullish for the time being, that might be misleading. Please read our Mathematical and Timing Analysis to see what will transpire over the next few weeks.    

MATHEMATICAL & TIMING ANALYSIS:  

First, a recap. Particularly for our new subscribers. Over the last few months we have maintained that the DOW will set a XXXX

(*** Please Note: This time around about 90% of the information contained within this section has been deliberately removed as it contain too much technical information. Particularly, exact dates and prices of the upcoming turning points. As well as trading forecasts associated with them. I deem such information to be too valuable to be released onto the general public.  As such, this information is only available to my premium subscribers. If you are a premium subscriber please Click Here to log in. If  you would be interested in becoming a subscriber and gaining access to the most accurate forecasting service available anywhere, a forecasting service that gives you exact turning points in both price and time, please Click Here to learn more.Don’t forget, we have a risk free 14-day trial).

Long-Term Overview:

XXXX

The next turning point is located at.

Date: XXXX
Price: XXXX

XXXX

Trading:

XXXX A lot of them have done incredibly well thus far and I hope you were able to benefit as well. I added my final position during the week as I have mentioned in the daily updates. XXXX

Remember, you should have an exact strategy and entry/exit points based on the forecast above. 

The list below is for your reference point. It entails my investment strategy for my own investment purposes. While you are free to follow me, please do so at your own risk. Do not take this as a trading advice. Please note, all of the positions below have been triggered.    

Stock

Entry Point ($)

Action Taken

Stop Loss @

XXXX

XXXX

Went XXXX

XXXX

XXXX

XXXX

Went XXXX

1250

XXXX

110

Went XXXX

121-123

XXXX

74

Went XXXX

80

XXXX

XXXX

Went XXXX

260

XXXX

XXXX

Went XXXX

460

XXXX

35

Went XXXX

39

XXXX

65

Went XXXX

70

XXXX

120

Went XXXX

120-130

XXXX

100

Went XXXX

108-112

XXXX

112

Went XXXX

120

Otherwise, I suggest the following positioning over the next few days/weeks to minimize the risk while positioning yourself for a forecasted market action. (This is continuation of our previous positioning).

If You Are A Trader: XXXX

If No Position: XXXX

If Long: XXXX   

If Short:  XXXX

CONCLUSION: 

An incredibly interesting week is coming up. We are now looking for our forecasts above to be confirmed over the next few trading days/weeks. I have also described what to anticipate over the next few months and exactly what you should do now. With increased volatility, multiple interference patterns and an incredibly important long-term turning points coming up over the next few months we must be very careful and risk averse here.  Those anticipating the moves and those who can time them properly will be rewarded appropriately.

Please Note: XXXX is available to our premium subscribers in our + Subscriber SectionIt’s FREE to start. 

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Weekly Update & Stock Market Forecast. April 12th, 2014 InvestWithAlex.com  Google