Updated September 2020
1987 stock market crash: could it happen again?
A “Black Monday” type event could occur again, but the Dow could also soar to 30K. The point is that anything can happen but sitting and waiting for a such an event to occur is the equivalent of putting all your eggs in one basket. Common sense states that putting all of one’s eggs in one basket is silly at best.
Markets are in bullish modes more often than they are in bearish modes. Hence, logic dictates that the focus should be on the market trending upwards as opposed to crashing This does not mean caution should be thrown to the wind. There is a simple formula that can help keep you on the right side of the market. Buy when there is blood in the streets and sell when the masses are jumping up and down in Joy. In other words, focus on mass sentiment as it always provides the astute investor with early warning signs. The key to understanding the dynamics of Sentiment is Mass Psychology
1987 stock market crash was nothing but a long term buying opportunity
Remember that when the markets eventually correct, this correction will be broadcasted as a crash (that’s the name of the game; scare the hell out of the masses) and it will be blamed on Trump. No, we are not getting sentimental on Trump. In reality, each president has only so much room to do what is deemed as good for the people; most presidents don’t even use this little leeway they are given but focus on themselves. As long as Fiat is around, every president will be bought and paid for. The big players have trillions at their disposal, so the dream of finding a great leader is just that, a “big dream”.
You are only free to do things that you are allowed to do, and this includes the president. Reflect on that we will expand on it later; we already provided you with a big hint. In case you missed the hint is “fiat money”. At the tactical investor, our focus is on dealing with reality and spotting new trends. Everything else falls into the idle gossip category. It might feel good to rant and rave about stuff like this, but it is a waste of energy. The focus should be on finding a way to play with the hand that you have been dealt with.
Market Crashes equate to opportunity
And this was abundantly displaced by the 1987 stock market crash
The markets follow the same path; until Fiat is eliminated this talk about the world coming to an end is nothing but rubbish. All those self-proclaimed masters of wisdom are either dead, dying or becoming highly irrelevant. Focus on the trend for that is all that matters; it is the only way to maintain your health and your wealth.
This market will experience many corrections in the years to come, some will be mild, some will be strong, and some will appear to be devastating. If you follow the trend, you will know when to move into cash and when to jump in. From a “super trend perspective” every back-breaking correction (emphasis on back-breaking) should be viewed as a long-term buying opportunity.
Overall the Trump presidency has made for some pretty damn good free entertainment; it is quite amusing to watch the other side react and equally amusing to watch the nonsense the Trump Team can come out with at times to defend their position. As time passes by, it appears that Trump is focussing more on himself than on making the country great. Who knows, he might suddenly change direction; he has a habit of doing the unexpected.
From a psychological perspective, you should hope that some shock announcement is made regarding “Trump”; it will scare the hell out of the masses, and the market will drop like a rock creating a lovely buying opportunity.
If there is another 1987 stock market crash event, Jump in & Buy
The press has always gone out of its way to twist the news and sell the masses rubbish, especially when it comes to the financial markets. However, the veil has fallen completely after Trump won the presidency. The utter garbage they focus on illustrates that IQ is no longer a pre-requisite.
We would not be surprised to find out if most of those individuals who pass for reporters have an IQ that is slightly above 70. An IQ of 70 equates to that of a retard. On the flip side imagine how difficult it would be if everyone were a genius, so be grateful for these penguins, as their reality is based on what they read. They make trading the markets infinitely easier as their behaviour is predictable.
The Fed via fiat money indirectly controls the media; the press through the garbage they print and pass off as news control the masses. You could not ask for a better setup of mind control; the masses think they are free, but they are not; they are free to make decisions in areas that do not matter. Look around slowly and determine for yourself if they are free.
The 1987 stock market crash was a mouth-watering opportunity
V readings have shot up 200 points since the last update
Without a shred of doubt, we can state that there will be at least one correction that drives the Dow lower by 3500-5000 points before this bull market is over and perhaps it might mimic the 1987 stock market crash. On the other hand, it might be a milder event. Focus on the trend, not the noise and buy when the crowd is panicking and sell when they are jumping up in joy; the formula is relatively simple.
We can also state that the political situation in America and Europe is going to get a lot more volatile and we mean insanely more volatile. Violence will soar in Europe and America, some parts of South America, the majority of the Middle East and to a smaller degree in Asia. Overall, Asia will be moving towards a more peaceful time except for a few hotspots such as North Korea, Pakistan and parts of India.
The problem with most individuals is that when they look at the markets, they do so with biased eyes. They already have preconceived notions, and they look for data to support these notions. Market Update May 19, 2017
Fear mongers will ply the same story of Gloom 100 Years from Today
Ten years from now or even 100 years from today, the outlook will be the same. The masses will have learned nothing, for they have learned nothing over the past 100 years and counting. They will react to the same stimuli, in the same manner, and the outcome will be the same.
The game even when “Fiat money” finally meets its end will be the same. Scare the masses, force them to stampede and then come in and buy everything for next to nothing. Fear is the weapon the top shadow players use with laser-like precision, and they know exactly how to elicit a reaction from the masses. The only antidote is to alter the angle of observance, view fear as an opportunity. Only the herd gets butchered; the individual player who marches to his drumbeat can ride on the coattails of these big players.
Stock market Crash 2020 looks like 1987 Stock market crash
Insiders have been using this massive pullback to purchase shares, and one way to measure the intensity of their buying is to check the sell to buy ratio. Any reading 2.00 is considered normal, and below 0.90 is considered as exceptionally bullish. So what do you think the current ratio is; well, it’s at a mind-numbing 0.35, which means these guys are backing up the truck and purchasing shares.
So what are the readings today? Based on very heavy transaction volume, Vickers’ benchmark NYSE/ASE One-Week Sell/Buy Ratio is 0.33, and the Total one-week reading is 0.35. Insiders are not just buying shares, they are devouring shares. Insiders behaved in a similar fashion in late-December 2018, after stocks crashed on Christmas Eve; in early 2016, when stocks also corrected; and in late 2008/early 2009, at the depths of the Great Recession correction. Those were spectacular times to buy stocks. Insiders seem to be telling us that today offers a similar opportunity. https://yhoo.it/2TV0cE2
These guys might not have a pulse on the economy, but they the inner workings of their companies like the back of their hands. We have yet another powerful indicator that this massive pullback is a once in a generational buying opportunity.
And as of cue, the Fed has decided to add even more liquidity by opening its commercial paper funding facility. In essence, this section provides unsecured loans to business.
The Federal Reserve announced Tuesday that it will open a commercial paper funding facility to support the financing needs of companies facing stress amid the coronavirus outbreak.The facility will support rollovers of commercial paper, a commonly used form of unsecured, short-term debt issued to raise funds.
With businesses forced to close and with consumer activity capped by quarantines around the country, concern has built up over previous weeks that companies will not be able to find funding to survive the public health crisis. The commercial paper funding facility will establish a special purpose vehicle (SPV) that will purchase unsecured and asset-backed commercial paper from eligible companies as long as the paper is rated A1/P1 as of March 17. The facility would be available to companies of various industries, not just banks. https://yhoo.it/3d6gmlj
The masses are in a state of disarray
The markets appear to have priced in a recession; in other words, the markets are close to having priced the worst news. Now, all it will take is a bit of good news to set off a melt-up. The good news is likely to start pouring after mass testing is underway. Sell the joy and buy the panic. The crowd is throwing the baby out with the bathwater, so its time to jump in and buy.
Stock market outlook September 2020 Update
September is viewed as one of the worst months of the year, when in fact, it should be viewed as one of the best months to jump in and buy stocks for a much lower price. This is the mass mindset for you and the secret desire to lose syndrome in full display. A large number of plays were filled, and one can see in real-time (especially new subscribers) that patience and discipline pay off. One should never chase an investment, and the tragedy of it all is that the very same people that were chasing high flyers are now scared to buy them when they are pulling back. The principle of buying low and sell high sounds so simple; the sad part is that hardly anyone puts this into action; instead, they opt to buy high and sell low.
CUB was in the doldrums for a while, but the pattern was healthy, so we held onto it and then this month it soared upwards. From being in the red, we are now sitting on gains of 28%. Many subscribers had the opportunity to jump in at much lower prices when the markets pulled back in March, with some sitting on open gains of more than 50%. Another stock that is displaying a similar pattern is AIN, but, remember our sacred rule, never deploy more money into any play. Deploy equal amounts into each play.
Never forget, the trend is your friend and everything else is your foe.
Other Stories of Interest
Should you fear Stock Market Crashes -Video (March 24)