5/22/2015 - A negative day with the Dow Jones down 54 points (-0.30%) and the Nasdaq down 1 point (-0.03%)
A massive and rather rapid stock market decline is coming later 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.
A few things to get through before our long weekend starts.
First, today's stock market appears bulletproof. The US Economy is on a verge of an "official" recession (no matter what Janet Yellen says), macro data is collapsing, the FED is about to hike rates and the stock market is sitting in an overvaluation bubble. Yet, the market refuses to go down. For instance, just this week....
Manufacturing PMI - Miss/Drop. Existing Home Sales - Miss/Drop. Philly Fed - Miss/Drop. Economic Confidence - Miss/Drop
....and the stock market barely budged. This is either really good or really-really bad. David Stockman believes its latter: Stocks and bonds will 'crash soon'
Stocks and bonds are on the verge of a catastrophic collapse. Everything is totally distorted and there is a day of reckoning coming down the pike.
While I would have to agree that everything is distorted, we WON'T have a crash here. That is not what my mathematical and timing work shows. There was a possibility of a market crash in October of 2014, but the market was able to push through. Yes, the market will go through a substantial 2 year bear leg in 2015-2017, but we will not have a rapid 20-30% decline/crash.
In fact, my work suggests that the market will drive both bulls and bears up the wall over the next two years. That is to say, we will be stuck in an environment where only the market timers will be able to make money.
Finally, bulls are hopeful that M&A activity will save this market. In a quiet stock market, whispers of an M&A wave Considering everything else, this is not a good sing. Corporate buybacks, M&A and foreign investors. All signs that the stock market is near a major top. Corporations are not different from individual investors. They tend to buy at the top and sell at the bottom. How many M&A were there at the bottom in 2008-2009? I rest my case.
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 22nd, 2015 InvestWithAlex.com
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