By Jeff Clark, editor, Delta Report “It’s all hype…” “It’s clickbait…” “It’s fearmongering…” That’s just some of what folks are saying about my prediction that the stock market will crash this month. I can’t blame them for being skeptical. After all, the financial industry is full of folks who make scary predictions just to capture headlines and get their “15 minutes of fame.” But, what if I’m not one of those people? What if I’m just a guy who has been following the financial markets for nearly four decades? What if I’ve made plenty of bold calls – many of which have been dead-on accurate? And what if I’m noticing that many conditions in the stock market today are eerily similar to conditions that have preceded bear markets before? Folks… that’s not fearmongering. That’s just suggesting, as the storm clouds build in the distance, that you might want to carry an umbrella. 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The MACD indicator at the bottom of the chart provides one of the early warning signs of a bear market. The MACD is a good way to measure the momentum of a stock. Without getting too complicated, if the black MACD line is trading above the red line, stocks are in a bull market. When the black line crosses below the red line, traders need to be on the lookout for the bear. Notice how in 2000 and 2007, the MACD indicator gave us that “bearish cross” from extremely overbought conditions. In both cases, the S&P 500 dropped into a bear market a few months later. Of course, you’ll notice the S&P 500 also dropped below its 20-month EMA in 2010 and 2011 (the red arrows on the chart). But, in both of those situations, the MACD was more neutral than overbought. There wasn’t a bearish cross in 2010. And in 2011, the bearish cross reversed before the end of the year. So, we didn’t have the conditions necessary for a bear market. Recommended Link | Brand-New: Start with $100 and Retire Rich? Over the past decade, Tim Sykes' stock trading teachings have helped his students with their retirement goals.. And in rare cases, some have even become millionaires... WITHOUT starting with much at all. That's why Tim is now offering this full book AND a year of access to his wisdom... for only $20. Yes only $20... because Tim knows that every $100 you keep could turn into $500 or even $1,000 down the road... If you read this book and take the right steps. Click here now to see this dirt cheap offer. | | -- | Today, though, the storm clouds look a little more ominous. The MACD indicator completed a bearish cross last November. And, it hasn’t yet made a strong reversal as it did in 2011. Instead, the black and red lines are moving together. The bullish momentum hasn’t returned. And that’s a significant warning sign. Of course, the stock market did recover from December’s breakdown. And, the S&P 500 did manage to make an all-time high in July. But, that action has created negative divergence on both the MACD and Relative Strength Index (RSI) indicators – marked by the blue lines on the bottom part of the chart. Negative divergence – when a chart makes a higher high but an indicator makes a lower high – tells us that the momentum behind the rally is waning. It’s a sign of a potential change in trend from a bull market to a bear market. This is just one of the reasons that suggests to me that the stock market may be heading for a crash – and soon. The S&P 500 is still trading above its 20-month EMA, for now. So, the bull market is still intact. But, there are plenty of caution signs. So, like I said earlier, maybe you should carry an umbrella. You know… just in case. Best regards and good trading, Jeff Clark Editor, Delta Report P.S. Investors could lose it all as the market crashes. But traders don’t fear market crashes. In fact, we get excited for them. As scary as they seem, they are a gold mine for trading profits… especially if you use my strategy. That’s why I’ve put together a brief presentation for you. And it’s not something you’ll read about in the mainstream media… To find out how you could profit off of the coming market crash, read on here. Reader Mailbag Do you see a crash coming this month? How are you preparing for a downturn? Send us your questions, comments, and concerns at feedback@caseyresearch.com. In Case You Missed It… I predict a Black Monday for October 2019 This October, I predict you'll see the worst Black Monday since 1987. You may not agree with me. But a decade ago, I called the 2008 Crash in a warning just like this one. Since then I've predicted almost every major correction, including the mini-crash last Christmas. This time around, I'm naming the exact date Black Monday could occur this month, and what it means for you. Click here by October 8th to learn more.
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