Daily Chart June 12 InvestWithAlex

6/12/2015 – A down day with the Dow Jones down 140 points (-0.78%) and the Nasdaq down 31 points (-0.62%)

The stock market continues to perform as forecasted here. A massive and rather rapid stock market decline is coming later on this year. And while we won’t have a crash, considering the amount of margin debt out there, quite a few people will get wiped out. If you would like to find out exactly when this move will develop, to the day, please Click Here.

Here is some light reading material before the weekend hits.

Get ready for a 4,000-point Dow drop

The stock market has an empirical rule: interest rates lead stocks. And the current interest rate environment is pointing to a massive decline for the U.S. market. Are there parallels to this current market environment? Yes — 1987.

This article brings out a number of important issues. Primarily, the fact that interest rates often lead the stock market. Consider this. Since its bottom in January of this year, the 10-year note yield is up 43%.

Did interest rates start their ascent, regardless of what the FED does? Will the FED need to play catch up?

Both scenarios are possible. Further, should the yield break out above 2.60%, it will break out of its long-term bearish pattern. That, in turn, might spell doom for the FED, the overall economy and the stock market. Checkmate.

The Fed accidentally created the most resilient bull market ever

Resilient or extremely dangerous? Let’s explore.

My July 2014 article ‘Bears Cry Wolf‘ included this message for everyone vying to be the next Great Bear: “A watched pot doesn’t boil and a watched bubble doesn’t burst. Stocks are not yet displaying the classic warning signs of a major top. There will be a correction, but the bull market won’t be over until most bears turn into bulls or the media stops listening to crash prophets.”

Fair enough Simon, but what exactly did your “watched bubble” do since July of 2014? As far as I can tell, the overall stock market, as measured by the NYSE, is slightly down since then.

People shouldn’t confuse the calm before the storm with the actual stability. I argue this point every single day on this blog.

And as all of my writings suggest, the FED has created the most dangerous market environment since, well, arguably 1987. Stability and resilience? Don’t make me laugh. Today’s market environment is more like a 40ft container full of TNT, with a lit fuse disappearing inside of it.

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. June 12th, 2015 InvestWithAlex.com

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