2/9/2015 – A down day with the Dow Jones down 95 points (-0.53%) and the Nasdaq down 18 points (-0.39%).
The volatility is certainly back as the market continues to drive both bulls and bears up the wall. Over the last 25 trading days, we had not one, not two, but six massive moves of 600-1,000 points on the Dow.
Why is this important?
This becomes incredibly important when we begin to consider market psychology. Think about it in the following fashion. At this juncture bulls are incredibly emboldened. Every sell off over the last few months and years has been recovered in record time as the market keeps pushing higher. At least to the bull this market cannot do wrong and every declined is viewed as a buying opportunity. In other words, the bulls are completely unconcerned with today’s trading range or any possibility of a large sell-off.
The situation is completely reversed for the bears. The second remaining bears get excited about a decline the market tends to completely annihilate them. Just as we saw during the 900+ point rally last week. Forcing most bears to be too afraid to initiate a short position.
So?
Well, this sort of a psychological setup can only play out in the following fashion……99% of bulls will be trapped when the market has a significant breakdown and 99% of bears will fail to initiate a profitable short position. Or just as it should be.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014/15-2017 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. February 9th, 2015 InvestWithAlex.com
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