Dow Crash is an Illusion Instead expect stock market Rally

Dow Crash is an Illusion Instead expect stock market Rally

The following excerpts are extracted from the Feb 29, 2016, Market update which is sent out to our paying subscribers.

V readings have soared by 70 points, but 70 points is not the issue; the issue is that they broke through a psychological barrier of 4000 with such ease. Simply put, this tells us that we have only witnessed the tip of the iceberg regarding volatility.  As the trends are still positive on two indices, the markets should experience blistering moves to the upsides this year.

Bearish articles continue to soar as the Doctor’s of doom are having a field day. Finally, they feel vindicated and jumping up with Glee, screaming “ I told you so” but quite conveniently forgetting that the “I told you so” only came true after their advice would have bankrupted anyone several times over had they been so naïve to follow it.  Market Update Feb 17, 2016

Far from crashing the markets have rallied nicely since the last update was sent out. However, we still feel that we are not fully out of the woods yet, though it is very nice to see a host of stocks resisting the downward pressure and trading at or close to new highs.

Since we sent out the interim update and despite Monday’s strong rally, the number of individual in the neutral camp jumped another 2% points. Now the total number of lost people (combining both the bears and neutrals together) surges to 85%; this means only 15% of individuals fall in the bullish camp. Market Update Feb 17, 2016

This week the number of individuals in the neutral camp rose, as did the number of bulls, and only the number of bears experienced a drop.  When we combine the neutrals and the bears, the total is 72%, and that tells us that the sentiment is still too negative for a crash.

The level of negative news continues to pile up as we expected; the Fed is priming up the crowd for a reversal. Just a few months ago, these guys were busy proclaiming that all was well, now they are ready to pull another fast one. It is amazing how gullible the masses are, and these top players have no respect for the masses. They view them as cannon fodder; they use the same old strategy over and over again, and the masses are none the wiser.

 

Dow Crash is an Illusion Instead expect stock market Rally  

Notice how misery loves company, Google “US economy in trouble, or US economy facing a recession” or any other negative topic and you will find a plethora of new articles being pushed out almost on a daily basis.  The consensus is for the economy to pull back and consequently for the markets to tank. The economy could sputter, but the markets will not tank as everyone is leaning towards that direction. Everyone usually knows next to nothing when it comes to the market. Unless the trend turns negative, you should not give two hoots to the doom scenarios these highly paid clowns come up with.

Well, the world did not end the markets did not crash, they rallied in the face of extreme negativity.  The Dow is still not out of the woods, a test of the August lows is expected unless the trend on the SPX suddenly turns positive.  The volume of negative articles and manufactured negative data continues to rise, setting the base for the Feds to sell “the prince rescues the poor damsel in distress story”. We use the word Manufactured because no data the government issues can be trusted. When crime incorporated is in charge, the assumption should be that the data is created to support whatever scenario the spin doctors choose to create. Many fools still believe that Iraq had WMD and that the U.S was right in attacking Iraq and getting rid of Saddam Hussein or that we were right in intervening in Libya, Syria, Ukraine, etc. In each the U.S was wrong, the government lied to the people using the press as their mouthpiece, and the gullible masses bought the story hook line and sinker.  The result, the rich became richer and the rest a lot poorer.

Game Plan

When panic is in the air, run out and buy; sell the bullshit and purchase the dip.  BS equates to the penguins coming out and stating that the world is going to end. Look at the so-called expert below predict a stock market crash; the problem is that this guy has done it over and over again and each time he has been wrong. When you see guys like this talking you should run away, for their advice is on par with garbage.  Garbage might even better as it can be recycled or made it manure.

Until the Fed stops robbing Peter to feed Paul, every sharp correction has to be viewed as a buying opportunity. If you are looking for guidance, consider subscribing to our Market Update service.   Where we use Mass psychology and Technical analysis to keep you on the right side of the markets.

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US Congress losing mind over Russian Arms Sales to Iran (March 17)

Russian economy improving; Inflation down over 50% (March 17)

Fed’s change of Heart Could trigger strong Rally in 2016  (March 17)

seeking perfection Recipe for Financial Tragedy (March 16)