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The FED To Investors: Expect Panic And Illiquidity

Daily Chart April 23 2015

4/23/2015 – Another up day with the Dow Jones up 21 points (0.11%) and the Nasdaq up 21 points (0.41%)

The stock market continues to behave as anticipated. If you would like to find out what happens next, please click here. 

You know the bubble is getting out of control when even the FED is warning investors about today’s high risk environment.

Market liquidity drought raises alarm bells inside Fed

Sections of the U.S. financial system that may be vulnerable to investor panic are raising concerns inside the Federal Reserve, as policymakers preparing for the first interest-rate hike in nearly a decade seek to ensure the market is ready and able to handle it whenever it happens.

Liquid markets could quickly turn illiquid in response to a shift in Fed policy or some other shock, which could amplify any adverse market response, as occurred during the taper tantrum.

In other words, investors continue to play chicken with the FED. Here is one thing most investors are forgetting. Given recent all time highs on most major indices, the volume has been declining. This is atypical and suggests that the stock market is already illuquid. I wrote about it before Top Hedge Fund Manager: No Liquidity, Stock Market Shock Is Imminent

Does that mean we are about to experience the repeat of 2007-2009? Not likely in terms of magnitude of the move, but it is quite possible that any upcoming correction will be violent.

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. April 24th, 2015 InvestWithAlex.com

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The FED To Investors: Expect Panic And Illiquidity Google