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EXTREME PAIN: Within Spitting Distance To A CRASH!
In the other scenario, which looks like we might be entering, this is only the halfway point for this correction. In other words, we could be facing another horrible sell-off, similar to the one we just exited last week, which will really shake investors badly and implant catastrophe into their minds.
Pre-programmed algorithms will make that even worse, intensifying the problem by triggering pre-determined technical stop-losses or by shorting tech stocks. If the markets are not in the clear, we’ll be facing a terrible November, so brace yourself.
Here are some key numbers to keep an eye on:
Courtesy: StansberryResearch.com
During the last phases of bull markets, technical analysis isn’t that reliable in predicting the direction of the trading sessions because people’s minds work less by the data and more by their ballooned fears or greed.
They can become way too bullish or far too bearish, at the flick of a switch.
In other words, they are not tolerant of mistakes, and they trade instinctively, based on euphoric optimism or doom-like pessimism. So, you might see, as the chart above shows, those “normal” indicators, such as 200-DMA and 50-DMA failing, yet it won’t mean the bull market is over.
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This means you’d be better off focusing on how much risk you want to take and how much confidence you have in yourself, as a trader, instead of placing your fate in charts, since they might not depict reality.
Self-assessing your expertise level will determine how much you put in cash, how much you diverse into real estate or closed-end funds, and how much you put into stocks.
Nearly half of the companies have seen their share price drop over 20% from its 52-week highs.
Courtesy: Zerohedge.com
I’m focused on the support level for the S&P 500, then, which sits at 2,583.
If the index falls below it, then, technically speaking, we could go down another 6%-9%, which is a big deal.
It will represent the greatest buying opportunity since 2008.
November 2018 is shaping up to be the most important month for this 9-yr bull market, so be at the top of your game.
This coming Sunday, I’ll show you what the biggest bullish catalyst is and, on the flip side, what can happen, worst-case scenario.
Best Regards,
Lior Gantz
President, WealthResearchGroup.com
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This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.
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