Stock Market Analysis

Thursday, January 07, 2016

Market Crash Timer: RED

I think we are witnessing the start of what will be known to be the China and Oil slump recession. US market continued to dive towards the August low exactly how I told paid subscribers yesterday:

"With 3 declining peaks pressing down and crushing investor confidence, this could even be where it go straight down to the August lows."

(Yes, I only publicly post my report here every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)

And indeed, the market did continue to head straight for the August lows so far exactly as I have predicted today as Jobless Claims turned in worse than expected. Its a good thing I have prepositioned my Master's Stock Options Picks subscribers with put options on the QQQ a few days ago and are now sitting on some nice profits. This year so far has been wonderfully profitable. So, tomorrow is the dreaded day... perhaps the day the August or October low get tested in one big dive if the jobs report fails to meet expectation. So far, all of the major economic data has been worse than expectation so it is very likely jobs report is going to be so too. Even without the jobs report, the combined effect of the dive in the Chinese market and the nose dive in the energy sector is even to spark a market crash. For two continuous days every bearish stock that turned up on my Star Trading System has been energy stocks and we also took put options position in one and are now sitting on profit too. Yes, this isn't the first time oil has sent the world into a recession. In 1981, a global oil glut sending oil prices plunging the way it is today sent the US market into a one year bear trend. This could be one of those times. I still remembered how the news was about $100 oil and how it could even hit $1000 the way the world is developing back in 2007. See where it is today. Even though analysts love to extrapolate linearly, the market and the economy works cyclically instead that when the time to slump comes, it will find reasons to.

The scary thing about today's move is that it doesn't look overdone on the internals at all! Volume was rising in a healthy manner, bond yields were down gradually as investors continue to return to safety and total equities put call ratio displayed the exact put options trading patterns that we saw back in last August. All in all, it all points to MORE DOWNSIDE tomorrow. Yes,  if you are not already prepositioned like my Master's Stock Options Picks subscribers are, this could be a tricky place to start getting into this.

The pieces of the market crash are almost all in place and I am officially turning up the market crash timer up a notch to RED, which is imminent. 

Market Crash Timer: RED

For now, the market remains in short term and intermediate bear trend within a primary neutral trend.

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