'Scary' correction is coming: Analyst

cnbc ^ | 8-27-2014

[Citizen Zed]

The Fed's low interest rates could bring a "scary" 50-60 percent market correction, technical analyst Abigail Doolittle told CNBC on Wednesday.

"Unfortunately, I think it could come on a crash similar to what happened in 2007," the founder of Peak Theories Research said on " Squawk Box " a day after the S&P 500 closed above the 2,000 level for the first time ever. "It's tough to know what the exact catalyst will be. But that's the very nature of that kind of selloff. They start slowly and then happen very suddenly."

Doolittle pointed to a 20-year chart of the Dow Jones Industrial Average. "When we take the long-term chart of the Dow ... we see that it's trading in a multiyear trading range, hitting up on resistance. … What makes this so important [is] you can see that the entire bull market trend over the past five years has started to reverse.

[OrangeHoof]

I predict the crash comes when the liberals on Wall Street and elsewhere decide they are serious about getting Hillary elected because they don’t want to cost Hillary the election so, much as they hate to, they’ll cause Obama’s economy to crater because Obama’s legacy is less important than getting Hildebeast elected.

If, by chance, the GOP takes the Senate, the media will try to blame the crash on Republicans and any austerity measures they may propose.

[taxcontrol]

I agree and I’m already there.

[djf]

Got news for ya, I think if 5% of Americans tried to move to a cash position, the banks and brokerage houses would slam their doors shut quicker than you can spit!

[laplata]

Please see post 13.

[mj1234]

Me too-

Not ALL of my investments- but some- moved it
to... Hopefully a safe area.

[cuban leaf]

caused me to go here: https://www.google.com/search?hl=en&q=blood+moons+harbinger&gws_rd=ssl

Interesting.

[fatez]

I keep thinking that the feds will keep interfering with the market until after Nov 4. They want to prop it up until the election. I plan on pulling out after Labor day.

[Buckeye McFrog]

Scary, but totally predictable.

This market is supported by little but smoke, mirrors, hot air and B.S. in my opinion.

[The_Republic_Of_Maine]

i disagree!

As long as the fed can pump digital money into banks and the accounts of judges, members of congress, the administration and corporations, there will be no collapse, for there is nothing to collapse.

[RedStateRocker]

You are exactly right.

[LRoggy]

And this article marks an important landmark for Free Republic . . . the 1,000th crash prediction article posted in the last 5 years!!

Drum roll, please!

Haven’t seen a Fleckenstein article lately . . .

And a 50%-60% CORRECTION is NOT a CORRECTION for crying out loud. It’s a CRASH.

[MrB]

If you haven’t seen/heard Jonathan Cahn yet, find an interview or speech and listen to his discussion of “The Harbinger”.

[atomic_dog]

Keep your eyes open next Tuesday Sept. 2.

In 1929 the Dow peaked the day after Labor Day.

[laplata]

Will do. thanks very much.

[2001convSVT]

Thank you, dfwgator. LOL, ROFLMAO!

[notdownwidems]

Got news for ya, I think if 5% of Americans tried to move to a cash position, the banks and brokerage houses would slam their doors shut quicker than you can spit!

Help! The average Joe like myself needs clarity, in order to save whatever might be saved! What does the above mean for me and what can I do to prevent/ameliorate it? I have a modest retirement account invested with Ameriprise in a (what I thought was) relatively safe mutual fund. What should I do? Seriously

[djf]

Well think about something.

Most (if not all) of the biggest banks and brokerage houses simply do not have the cash to cover investors.

So you have to decide if you want your money sitting in an account that might never get cashed out, or get seized by the Feds, or whatever, and do what's appropriate.

[Mase]

Does she really think earnings are all of a sudden going to crash by 50%-60% as well?

I swear, I think these people make outrageous claims simply to get ink or to be on television.

[laplata]

I just watched Jonathan Cahn on YouTube. Yes, we have until 9-13-15 before it all goes down.

[laplata]

I think the FDIC only has about $11 billion to cover all the deposits.