Are We Really Headed for A Crash?
When ever you have a normal market correction (which we just had and are having) you hear the same old Peter Schiff crap that starts to resonate from all the market experts who of course over the past ten years haven't been very good at predicting the market direction at all.
I placed the DOW weekly chart on the bottom of the page here so that you can see for yourself just how wrong they are in relation to the stupid babble that comes out of their mouths.
If you clearly understand how the markets really work and what is going on you will sit back and not worry very much at all. You can clearly see that we are NO WHERE NEAR a complete market melt down. In fact we are not even close yet to the secondary trend line and are just NOW at the first trend line that took the market to new highs very recently.
I put the Nekkei on here before to give you a reference point as to where you should be concerned and when it hit that area that is where you may have wanted to be flat in the market. You still would have made some nice profits. This is similar.
You can see that the market would have to fall to about the 17000 area before I would get too worried and that just happens to be the major volume area that pushed the markets higher so I doubt very much it will get past here.
You have to remember this vehicle along with others is being artificially manipulated by central banks. Quite simply it won't be allowed to crash. They will just buy stocks and have other central banks buy stocks from the major companies propping up the market which will translate into more dividends and buy backs from the companies so that is how it will work. That is how it has worked for the past ten years. Why would it change now?
The Fed and other central banks are out of ammunition?
Uhhh...no. Not by a long shot.
If you look at the horizontal line at the top around the 26,195 area this is where the inflation adjusted Dow should be. Perhaps a little higher. So it is right around the valuation point. If anything the market may move sideways for a while from here, but crash, not going to happen.
In fact I see possibly so more downside before the market jumps to new highs. Just enough to get some dumb shorts in to ramp it higher. What is happening now is some weak longs are taking a bit of a bath. That is about it.
So use the chart as a point of interest where you can position your portfolio. You may wish to lock in some profits here but I wouldn't panic just yet. Hopefully that helps you get a clearer perspective and keeps you away from any foolish predictions. Any large sell offs are a time to buy not sell.
Cheers!
I placed the DOW weekly chart on the bottom of the page here so that you can see for yourself just how wrong they are in relation to the stupid babble that comes out of their mouths.
If you clearly understand how the markets really work and what is going on you will sit back and not worry very much at all. You can clearly see that we are NO WHERE NEAR a complete market melt down. In fact we are not even close yet to the secondary trend line and are just NOW at the first trend line that took the market to new highs very recently.
I put the Nekkei on here before to give you a reference point as to where you should be concerned and when it hit that area that is where you may have wanted to be flat in the market. You still would have made some nice profits. This is similar.
You can see that the market would have to fall to about the 17000 area before I would get too worried and that just happens to be the major volume area that pushed the markets higher so I doubt very much it will get past here.
You have to remember this vehicle along with others is being artificially manipulated by central banks. Quite simply it won't be allowed to crash. They will just buy stocks and have other central banks buy stocks from the major companies propping up the market which will translate into more dividends and buy backs from the companies so that is how it will work. That is how it has worked for the past ten years. Why would it change now?
The Fed and other central banks are out of ammunition?
Uhhh...no. Not by a long shot.
If you look at the horizontal line at the top around the 26,195 area this is where the inflation adjusted Dow should be. Perhaps a little higher. So it is right around the valuation point. If anything the market may move sideways for a while from here, but crash, not going to happen.
In fact I see possibly so more downside before the market jumps to new highs. Just enough to get some dumb shorts in to ramp it higher. What is happening now is some weak longs are taking a bit of a bath. That is about it.
So use the chart as a point of interest where you can position your portfolio. You may wish to lock in some profits here but I wouldn't panic just yet. Hopefully that helps you get a clearer perspective and keeps you away from any foolish predictions. Any large sell offs are a time to buy not sell.
Cheers!
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