February 9th, 2014 Update
Why will the huge stock market correction happen real soon?!
…by Ali Firoozi Yasar
I am not being paranoid here and aside from the cycle-work, there are clear reasons that a dramatic decline in the stock market is on the way. Actually, it could strike any day now. The market is just hitting pre-crash tops, we being at the beginning of a new bull market is all over the financial media and companies are still reporting positive earnings but you folks should be aware that the stock market is on the verge of another huge decline.
The annual S&P 500 consensus earnings per- share is expected to come in a lot lower than originally predicted. You see, estimates were so close to $125 in January 2012, and now have dropped 10% to only $112. In spite of the warning sign of declining earnings, the S&P keeps on going up.
The investors and traders are extremely bullish on the stock market now. As a matter of fact, the reading is getting close to a 10-year high, and most of you guys can tell from experience what happens if market sentiment is at extreme levels one way or the other. If the small traders are so bullish, you’d better be cautious. You know better than anybody else that what happens to sheep?! Sheep gets slaughtered.
Actually, I could name many other factors but now we have enough evidence and clear reasons (aside from my work) that the stock market is awaiting a drastic correction which could result in a dramatic stock market decline, 50% unemployment, and 100% annual inflation starting this year.
The charts I showed you in my last post the general trends of the market. In other words, the market may or may not exceed the levels I indicated on the charts. Actually, I only wanted to warn you guys to be prepared for the “unthinkable”.
I hope, you guys will consider this a wake-up call, especially those who are not prepared or willing to admit an ugly truth.
May you profit handsomely,
February 3rd, 2014 Update
...by Ali Firoozi Yasar
As most of you folks are ware, we have recently received important news about the economy: GDP, Weekly jobless claims and pending home sales data and also an additional $10-billion QE tapering through the FOMCs latest statement.
The annualized GDP rate sounded OK. Consensus was for a reading of 3.0% but in fact, the 4th Q estimate 22% in three months. The weekly jobless claims were supposed to show a reading of 327,000 but the actual data was a bit quite worse, at 348,000 new jobless claims. And eventually, the pending home sales data came out which was really terrible! You see, economics’ consensus was for a small depression of -0.5%; however, the actual release was -8.7%.
Please check out the chart No.1 below. As I had already anticipated, the market topped out and the prices kept on moving down, finding support at the 1761.00 area. You see I am not so precise on the charts as I solely intended to show you the model, not focusing on the exact price&time levels.
Now check out chart No.2, even though the markets will do what they are supposed to do, the main- stream analysts and advisers attributed the brief rebound on January 31st to the better then expected GDP figures and they would still like to see if the rebound is able to maintain the momentum to the upside, hoping the prices will go to the Moon, not knowing there are not many buyers left and it is time for a good break.
The prices will bounce real soon, back-testing 1810.00 area in order to suck in more retail traders, or we could see the market rally briefly, then a sideways chop, after that a drop to the lower levels as indicated on the chart. You see, my business cycle suggests that the U.S economy is ailing now; you may also see bad earnings reports during the coming days, adding fuel to the flame, consequently the market will have to correct and have a good break before it starts recovering again.
May you play it safely and profit handsomely,
When will the stock market bubble burst?
...by Ali Firoozi Yasar
Hope all is well with you guys. I know it has been a long while since I last posted on Red’s blog. I have been super busy at work, so my apologies for the long absence. But now it's important to get you all this update as the time is near.
The stock market is at a critical moment! Goldman Sachs has suddenly decided to warn all of us that the stock market could decline by 10 percent or more in the coming months! But are they just honestly trying to warn their clients that the stocks have become overvalued at this time or is it just another agenda at work?!
Whether it is an agenda or not the stock market has just entered a very dangerous zone. Stocks are massively overpriced and investors have been borrowing huge amounts of money to buy stocks. Consequently, the margin debt at the New York Stock Exchange is truly at a crazy level!
These kinds of behaviors and signs actually indicate that another bubble burst is on the way. On top of that the state of overall U.S. economy is getting worse while the market is soaring to new highs. It is not a good sign folks. The U.S economy is in a very bad condition now, in fact it's in a much worst condition then it was the last time we had a major crash back in 2008.
Employment is much worse now that it was at that time and the U.S banking system is more ailing with more debts than it was back then. It owed about 10 trillion dollars but today the debt has increased to more than 17.2 trillion dollars. The market keeps on fooling the masses with this illogical bubble, but this "fooling" can't continue.
I highly suspect this massive stock market bubble will not last for much longer, and a lot of financial market experts are now advising and warning their clients to prepare for a substantial pull-back. You see the market was manipulated by the Fed in early August when a dramatic decline was due.
A lot of people had already been aware of that, which was probably the reason for the delay until now. The bottom line is... the energy of the current run has fully been drained and the Fed is not able to fight it any more.
Actually, it can be likened to a man who has been holding a big weight over his head for a little while but now his energy is getting depleted. So he takes a quick shot of Adrenaline to keep him going a little longer (aka "more printed money secretly injected into the market... [most likely]), and you know it's his 4th, 5th, 6th shot or more? With each time the effects last a shorter time compared to the one prior, and I think this is the last shot before the weight is dropped!
As mentioned above, the market was manipulated by the Fed in early August and it has been tolerating the burden since then. They are not able to hold it up anymore. This is actually what I see in the S&P500 based on the cycle work and harmonics. I am afraid I cannot give out much information here as it could be leaked and copied.
I believe the market will put in another high but the length of the rally will be relatively smaller, then a sharp decline to the 1350 area is possible. After that, a rally back up to new highs (the 2100 area is very possible) will probably follow. You see, it can be a huge opportunity to enter the market with a large short position when the time is right. As soon as the decline kicks off there will not be a major pullback to re-enter so you would want to make sure not to miss the ride at the very top.
May you profit handsomely,
The Date For The Coming Crash Has Been Given To Us By The Elite Themselves
(to watch on youtube: www.youtube.com/watch?v=g3kZh_RjXjA)
Email me for password...
red (at) reddragonleo (dot) com