11/18/2014 – A positive day with the Dow Jones up 41 points (+0.23%) and the Nasdaq up 31 points (+0.67%).
If you recall, the biggest IPO of the year, Alibaba (BABA) went public on Friday, September 19th. That was the exact date of the market top, followed by a gut wrenching 10% decline into October 14th. And while we don’t have a massive IPO coming to the market this time around, we do have 12 of them hitting the market at the same time…….this week. The IPO rush begins
Great news….right??? Not so much. While most investors see the flood of IPOs as a net positive and as a confirmation of a strong market, it is rarely so. As Alibaba example above, a crash on the Nasdaq in March of 2000 was a perfect illustration of what happens when too many speculatively priced IPOs hit the market at the same time. That is to say, IPOs, too many or too big, tend to suck up all available capital.
So, lets look at the facts. We have had one of the fastest rallies ever since October 14th low, the market is overpriced, low volume, a wide range of divergences, massive gaps suggesting upcoming downside, FED tightening, speculative spirits are running high, flood of IPOs and everyone expects a Santa Claus rally into the Dow 20K. What can possibly go wrong?
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. 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 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: 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. November 18th, 2014 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
