4/22/2016 – A mixed day with the Dow Jones up 21 points (+0.12%) and the Nasdaq down 40 points (-0.80%)
I remember looking at the Nasdaq in January-March of 2000 or at sub-prime lenders/financials/real estate companies in 2007, scratching my head and wondering “WTF is going on?” Well, I am asking the same question today. But I am hardly alone…..
Strangely enough, earnings are beginning to collapse while no one is guiding aggressively higher. For instance, just on Friday alone Microsoft, Google and Starbucks got taken out to the house of pain. But that’s not the worst of it. Consider the following….
- Schlumberger CEO Sees `Full-Scale Cash Crisis’ in Oil Sector
- Investors pull $7.3 billion from stocks, largest outflow in nine weeks: BAML
- Global economic bellwether Caterpillar just slashed its outlook
Meanwhile, the stock market is sitting near all time highs with bulls proclaiming all kinds of “new bull market” craziness.
What gives?
Well, one can argue that we are at the bottom of this earnings cycle and that the stock market has already priced all of the above in. Once earnings recover and with the FED being so accommodating, the new bull market is just around the corner.
Perhaps. I personally do not share in such outlandish optimism. I do not believe earnings will recover here in any meaningful way and the FED is tapped out. There are no drivers for any earnings recovery and the FED is literally unable to stimulate any further. Now, if you believe in central bankers now openly interfering in various markets you might want to consider the following theories….
- Central Bank Mafia Goes All In…Stocks Rally…A Little
- Commodity Trader: “What Is Happening Has Absolutely No “Reasonable” Explanation”
Here is the bottom line. The stock market is sitting in an overvaluation bubble. As I have shown on this blog a million times before. In the meantime, earnings are collapsing and the FED is literally tapped out with interest rates at zero.
What do you think is going to happen next?
Remember, it is the stock market’s job to confuse as many investors at once as possible. It is the duty of the market to destroy as many bears and to suck back in as many bulls as humanly possible before a counter move starts.
In other words, the stock market is doing exactly what it is supposed to do. And when the TIME and PRICE are right, the market will surely rip today’s brilliant bulls into a million different pieces. If you would like to find out when that Price/Time arrives, please Click Here
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 22nd, 2016 InvestWithAlex.com
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