Stock Market Crash Today: Should you fear Stock Market Crashes

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Stock market crash today

The Stock market could crash today or tomorrow & Then?

Will you panic and let your emotions do the talking; remember panic is for fools when it comes to investing.

Those that sit and hope for a crash are the ones that will miss out on all the gains they could have banked while they were cowering away in fear.  History indicates that every stock market crash to date proved to be a long-term buying opportunity and nothing is going to change that until Fiat is eliminated. Fiat is not going to be eliminated soon as the masses think it is way better than Gold. Buy when the masses panic and sell when they are euphoric, following this simple principle could net you a fortune

 If the Stock market crash today or tomorrow, does it really matter?

 

One should never panic for as we have repeatedly stated once you panic the outcome is always negative. What the masses fail to understand is that when you feel good about investing in the markets, the markets are usually dangerously close to experiencing a large correction. One has to go against the crowd if one expects to succeed in the markets.  

There is no such thing as teamwork when it comes to stock market investing; teamwork does not pay and will ensure that you are always rewarded with a solid kick in the head. The masses cannot win as there is not enough money to go around for everyone.

Stock Market Crash Today Theory is A Good Ploy To Sell Rubbish 

The stock market crash today  Story is a ploy because fear sells.

Forget about the idea that the stock market will crash today; it’s nothing but a ploy to get you to worry about a future event that has little chance of coming to pass right now. In the interim, you are giving up tonnes of profit by fixating on an idea that could be far out into the future.

It makes more sense to focus on the now, for it’s the now that helps shape the future. One clue to determining market turning points emerges from observing the masses. Until the masses turn euphoric, there is very little to fear regarding a stock market crash. No stock market bull has ever ended on a sour note, and the masses are from euphoric as can be seen by the two gauges below.

Fear is for fools; the astute investor understands that fear might work in the jungle, but it will never help you when it comes to the financial markets. Instead of panicking when the market’s pullback, celebrate and buy if the trend is positive.

Tactical Investor Updated View on The Markets  Jan 2019

Should you fear stock Market crashes? Absolutely not

We stated in the chart that was published in the Sept 17, 2018 update that the Dow would find support in the low 24,000 ranges and the subsequent rally would run into resistance in the 25,700-26,000 ranges. This part has come to pass, but the pullback from that zone has been a bit sharper than projected. Is something changing?

Should you fear stock market crashes? absolutely not

First of all, the current action was normal before 2009.  After the markets bottomed, they would rally, but the initial rally would fizzle out, and the market then pulled back to test its lows or put in a new intraday low before trending higher. This type of action knocked out the weak handed bulls. However, after 2009,  the markets pulled back sharply and reversed course even faster;  with the passage of each year, the reversals, in general, were faster.

Looking at the five-year chart the closest the market came to experiencing the kind of action that took place before 2009 was between July 2015 and Feb 2016.  Even then, you can see that each time the Dow corrected, the reversal was “V-shaped” in nature.  However, the action following the second rally that started roughly towards the end of Jan 2016, was reminiscent of former days; the market after initially soaring higher trended sideways from April 2016 to almost Nov 2016 and then it took off like a rocket.   We have a similar pattern taking place right now; the only difference is that it spans nine months versus the previous one which spanned seven months.

The Weekly Chart of the Dow with resistance and Support Points

Should you fear stock market crashes; yes, only if the trend is negative

This is the same chart posted earlier, with two new lines.  Look at the 1st green box; the Dow traded below its previous highs for almost one year before blasting off. The two sharp corrections represented in the green box proved to be buying opportunities (and we offered the same advice that we offered in Feb of this year and in Oct; all sharp pullbacks should be viewed as buying opportunities) but as we just pointed out the Market did not break out until Nov of 2016.

The  26,900-27,000 ranges represent resistance, and once the Dow closes above this level on a monthly basis, former resistance will turn into support, and this could prove to be the trigger that propels the Dow all the way to 27.5K and beyond, possibly as high as 30K. After which point it is possible (don’t fixate on this now) the markets will experience a back-breaking correction.

Bogus Economic Recovery equates To Never-Ending Fed Accommodation

From the very onset of this bull market, we stated that this economic recovery was bogus in nature, but just because it was bogus did not mean that the markets would crash. In fact, at the time we stated that the opposite was true and this stance will remain valid until the trend changes.

The US and Worldwide recovery have been fuelled by easy money and if that supply is cut this so-called miracle will end. In time, it is possible that these massive tax cuts and the government’s efforts to deregulate will bear some fruits.  If this economic recovery were real, the housing market would not start to experience tremors when interest rates are in the 3% ranges.  Unless the Fed wants to trigger the mother of all corrections in roughly 12 months or less, it will think 100 times before taking the same stance it has taken for roughly the past one year; more on this later on (under the bond market section) of this update.

 

Stock Market Update March 2020

The guys predicting the demise of the world since the beginning of time will all be dead before even 1/10th of it comes to pass. This crash is a time to buy and the coronavirus is a test to see how fast social media can be used to stampede the masses. So far it’s working brilliantly, like fools the crowd’s stampedes without checking the facts

This could prove to be a fantastic buying opportunity for traders willing to take a risk. Don’t focus on the short term but on the long term, history indicates that the markets have an uncanny ability to trend upwards. Bears that have been beating the markets will crash have a dismal long term record. Markets trend upwards once the dust settles and this time will prove to be no different

Take a look at how many people die a day from other causes and the flu https://www.worldometers.info/

investor sentiment cycles

The masses are still uncertain so all sharp pullbacks have to viewed through a bullish lens. Do not listen to the noise but focus on the trend and build up a list of top-notch companies you would like to own.  When the markets let out a large dose of steam you will be ready to purchase these companies at a significant discount.

There is no doubt that we are experiencing one of the most challenging times since the financial crisis of 2008.  Hysteria has gripped everyone, especially in the U.S. and its feeding on itself as everyone from the top of the rung to the bottom is running around like headless chickens.   Now before we continue, we are not going to distort the truth or make up stories; in the short term we have taken a beating, it’s a blood bath out there.

Having said that we have never seen such a situation after having witnessed several crashes in the past.  Don’t take this as a sign to throw caution to the wind; we will deploy capital in a disciplined and controlled manner as we have always advocated.

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