3/10/2016 – A negative day with the Dow Jones down 5 points (-0.04%) and the Nasdaq down 12 points (-0.26%)
As Mike Tyson puts it – “Everyone has a plan ’till they get punched in the mouth”
Today’s market action was incredibly important in a sense that I believe Mr. Market finally delivered that first punch in the mouth to the central bankers around the world. Let’s recap.
As was suggested this morning Mario Draghi and the ECB went all it. To say the least.
Draghi’s bazooka just went bust: NYSE trader
Mario Draghi did his best to “wow” the masses this morning. Interest rate cuts and increased quantitative easing (QE) were well within expectations. The attempts at overkill were made in the Long-Term Refinancing Operation (LTRO) facility, which is aimed at rescuing the banks (how strange is that?) and the purchase of corporate debt to be included in the QE program. Yeah, just where do you draw that line? Shaking my head. What do they buy next—goods & services?
Considering all of the above the markets should have gone berserk to the upside. And they did, at least for a little bit. That was followed by a massive failure in multiple markets. For instance, the Dow collapsed 300 points while the German DAX lost nearly 5% (top to bottom).
Here is what I believe this failure is telling us. Technicals aside, I believe market participants are starting to get sick and tired of central banker’s BS. And once that actually happens, it will be game over for the ECB/FED/BJ and everyone else.
That is incredibly important.
Central bankers (and investors) around the world believe they can control the markets with nothing more than a statement. Today’s market action suggests that is no longer the case. More importantly, the market is signalling a shift in perception. If Mr.Draghi’s proverbial “Bazooka” failed miserably, there is no reason to believe that the FED will have any more success.
And that in essence spells doom for the over leveraged, overvalued and highly speculative stock market indices around the world.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. March 10th, 2016 InvestWithAlex.com
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