5/27/2015 – A positive day with the Dow Jones up 121 points (+0.67%) and the Nasdaq up 74 points (+1.47%)
Bulls continue to proclaim that this market is climbing the wall of worry. Apparently, the world is full of “financial market unbelievers”. To be honest, I have no idea what they are talking about. Every bear I know is scared to death to touch this market on the short side. And I am not the only one seeing this. Let’s explore.
This average currently stands at 81.3%, which is one of its highest readings in years. As you can see from the accompanying chart, the stock market has declined over the past 18 months whenever the HNNSI rose to current levels.
Considering the fact that the overall stock market (NYSE) hasn’t gone anywhere over the last 10 months, I would say that this is as bullish as it gets. However, you don’t have to look further than VIX/VXX to discover the same thing.
I have beaten this point to death over the last few weeks. Plus, I have shown that commercial interests have built a massive long position in VIX (COT Report). In anticipation of a bounce. In other words, everyone expects this bull market to continue and no one is hedging. Hmm, I wonder what happens next.
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. May 27th, 2015 InvestWithAlex.com
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