4/15/2016 – A negative day with the Dow Jones down 29 points (-0.16%) and the Nasdaq down 7 points (-0.16%)

On April 21st, 2015 I wrote the following article Why Short Sellers Should Be Thanking GOD And after getting an earful for using “GOD” from one of my subscribers, the Dow proceeded to top out just 160 points higher on May 19th at 18,351. The assessment was indeed correct and shorts should have been shorting everything in sight.

On February 10th of this year I pointed out that everyone was too bearish. Financial Media Predicts Armageddon – Time To Go Long? The market proceeded to bottom a few trading hours later, staging a powerful bounce we are still witnessing today.

Which brings me to my new proposition. Not only should short sellers thank every lucky star in this universe and the next, they should actually spend a few dollars and send Janet Yellen a “Thank You” card. For this Central Bank Mafia Goes All In…Stocks Rally…A Little

On a more serious note, I remember seeing such blatant imbalances, overvaluation levels and rampant speculation on only two other occasions. In 2000 on the Nasdaq and in 2007 in most asset classes. Consider the following as we push into the weekend.

Bearish Case:

• The US economy is facing an ‘impossible trinity’ that will be a nightmare for investors
• Why this market rally looks like a classic investor trap
• The Dow Theory just flashed a buy signal — or did it?
• The Market Is In A ‘Spinning Top Candlestick Pattern’
• Why short sellers are loving this ‘as good as it gets’ market
• The World’s Most Bearish Hedge Fund” Has A Terrible March, Goes Even Shorter

Bullish Case: 

• 3 reasons stocks will drift higher despite bad earnings
• These 4 forces are lifting the S&P 500 toward a breakout

• Big banks will continue to lose money, but bulls don’t care: trader

At first glance it appears the analysis above is overly bearish. Just as it was at February’s low. It is not. We are now dealing with an overbought market with numerous red flags, too numerous to mention here, appearing all over the place.

Is the breakout possible?

Most certainly, but that would just take the entire market into the Nasdaq’s March of 2000 type of a setup.

I think the last headline speaks volumes about today’s investor sentiment. I am witnessing the exact same mindset in most of my daily dealings. I also remember perfectly well that bulls didn’t care about the valuation of Pets.com in 2000 nor credit spreads in 2007.

The funny thing is, eventually, everyone cares.

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 15th, 2016  InvestWithAlex.com

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