Kamis, 28 Mei 2020

Detecting Market Crashes 101

May 28, 2020

UNSUBSCRIBE | ARCHIVES

Money & Crisis

Tech prophet: "This market story will dwarf 5G…"

Doug George BobIf you're ready to bank on 5G stocks to take off when America reopens for business…

You may be in for a big surprise, according to "America's #1 Futurist," George Gilder.

In this brand-new video presentation… he explains why.

The bottom line is that 5G could indeed enjoy a "second gold rush," as plenty of pundits are saying.

But even better, says George, is something nobody's talking about.

He calls it "15G" — be among the first to get the details, at this link.

Detecting Market Crashes 101

Graham SummersDear Money & Crisis Reader,

Over the last few days I've been outlining how the stock market continues to rally despite the truly horrific economic data coming out of the U.S.

Indeed, just this morning we learned that another 2.1 million Americans have filed for unemployment. This brings the total number of Americans who have filed for unemployment to 40 million.

That's some truly horrific stuff. And meanwhile, the stock market has continued to rally, breaking out of a consolidation range to new highs.

stocks gain momenteum

This has led me to issue multiple warnings. Yes, we can use the market's upward momentum for our benefit in the near term, but we need to "keep one eye on the exits" at all times.

Of course, we don't want to let our emotions get in the way of this process. Which is why it's important to use an actual metric to decide when to get in or out of the market.

The Last Laugh: Why this NYC comedy club owner is laughing all the way to the bank…

James AltucherCashing in on comedy, former hedge fund manager and Wall Street insider James Altucher says the income secrets he used to purchase his dream business are no laughing matter…
 
Today, he pulls back the curtain and shows how it's possible to start earning $1,500… $3,500… even as much as $10,000 a month working from your own home.
 
In fact, he has over 177 little-known income secrets you can use to change your life starting today…
 
Watch this video to find out more now >>

A Key Metric in Determining Market Collapses

One of the better metrics I've come across for detecting a market crash is the 50-week moving average.

This the sum of the market's weekly closing prices over the prior 50 weeks, divided by 50.

Looking at the chart below, you can see that if you got out of stocks whenever the S&P 500 broke below this line, you would have avoided some of the worst collapses on record – including the March meltdown of 2020 (red circles in the chart below).

tracking market crashes

More recently, the S&P 500 just broke above this line for the first time since the March lows (red circle on the right).

The question now is whether this is a real break and stocks are going to enter a prologue bull market… or if stocks are going to roll over again and collapse as they did in late 2018 (red circle on the left).

can stocks maintain their rally

The 50-week moving average is one of the key metrics I'm favoring for when to prepare for the next leg down.

As I continue to assert, the primary trend is up. But given how horrific the economy is, we need to keep one eye on the exits to ensure we avoid another collapse. And thanks to the 50-week moving average, we can take the guesswork out of when to make a move to the sidelines.

Best Regards,

Graham Summers

Graham Summers
Editor, Money & Crisis

The Coronavirus Lie?

Coronavirus meetingYour editor Graham Summers, who lives outside of Washington, D.C., has just blown the lid off the shocking truth about the media's coronavirus story…

When you see his research and discover what the liberal media has done to President Trump… I bet your blood is going to boil.

Just be warned: The contents of this special presentation might disturb you.

Because this could be the biggest American political scandal in the past 50 years.

Click here to see the special presentation now.

Tidak ada komentar:

Posting Komentar