Today's Market
by Dr Invest
There is nothing predictable in the stock market because the game is rigged. The market went into a recession in 2012. Copper declined, while stocks climbed. No longer was copper correlated to the stock market, and was surest sign that the fundamentals of the market were declining. There was a Head and Shoulders Pattern in the S&P 500, but rather than a decline, the QE by Bernanke kept stocks rising. This is what we would later learn was called the FED's WEALTH EFFECT. It was as if the economy was on LIFE SUPPORT. The FED was reassuring the investor that they would stand behind the stock market guaranteeing future gains and job growth.
After seven years of government stimulus, studies have shown that the only thing the government has successfully done was to go deeper into debt and overvalue stocks. This is a course they may well continue, considering that to remove life support from the economy would surely return it to a down trend. The idea of ESCAPE VELOCITY has been bantered around in the study of economics and both the FED and OBAMA has proclaimed that our economy is STRONGLY RESPONDING to the interventions of the FED.
It is certain that in 2015 our economy has deteriorated. The FED and WALL STREET have said the deterioration was due to weather and later in 2015 proclaimed that the deterioration was due to China, but economic indicators seem to point to continued deterioration through out 2015. Now the question remains whether the FED will raise the interest rate 1/4 % or continue the current trend of 0% interest. We will know by Thursday.
Below is a chart showing the S&P500. Marked in red is the trend of the market. You will see a technical indicator showing what a BEARISH PENNANT looks like. When comparing that example with the actual chart, it looks identical. The expectation is that a down trend could occur at any moment.
I really don't need to say more. Protect your investment. Expect that at any moment the economy could deteriorate and enter a steep decline. The technical signs don't typically lie, but who knows what further things the FED might do to stave off an almost certain decline.
Note:The above article is for entertainment purposes and not to be used in any way as financial advice.
by Dr Invest
There is nothing predictable in the stock market because the game is rigged. The market went into a recession in 2012. Copper declined, while stocks climbed. No longer was copper correlated to the stock market, and was surest sign that the fundamentals of the market were declining. There was a Head and Shoulders Pattern in the S&P 500, but rather than a decline, the QE by Bernanke kept stocks rising. This is what we would later learn was called the FED's WEALTH EFFECT. It was as if the economy was on LIFE SUPPORT. The FED was reassuring the investor that they would stand behind the stock market guaranteeing future gains and job growth.
After seven years of government stimulus, studies have shown that the only thing the government has successfully done was to go deeper into debt and overvalue stocks. This is a course they may well continue, considering that to remove life support from the economy would surely return it to a down trend. The idea of ESCAPE VELOCITY has been bantered around in the study of economics and both the FED and OBAMA has proclaimed that our economy is STRONGLY RESPONDING to the interventions of the FED.
It is certain that in 2015 our economy has deteriorated. The FED and WALL STREET have said the deterioration was due to weather and later in 2015 proclaimed that the deterioration was due to China, but economic indicators seem to point to continued deterioration through out 2015. Now the question remains whether the FED will raise the interest rate 1/4 % or continue the current trend of 0% interest. We will know by Thursday.
Below is a chart showing the S&P500. Marked in red is the trend of the market. You will see a technical indicator showing what a BEARISH PENNANT looks like. When comparing that example with the actual chart, it looks identical. The expectation is that a down trend could occur at any moment.
Note:The above article is for entertainment purposes and not to be used in any way as financial advice.
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