“The Greatest Crash Of Your Life Is Just Ahead…” – Harry Dent Warns
Posted on 03/24/2016 5:58:20 PM PDT by SkyPilot
Stocks haven't done much in a while. Wednesday marked the eight-straight day that the S&P 500 had closed less than 1 percent above or below its prior closing price.
Ominously, the last time the market staged this long a period of quiescence was in early August — shortly before stocks took a gut-wrenching tumble.
Now, as then, "we are at a precarious position," Erin Gibbs of S&P Investment Advisory said Wednesday on CNBC's "Trading Nation."
"We're trading at fairly high valuation and earnings growth doesn't look that good, so any big shocks — disappointment from China, any movement from the Fed — could send us into those highly volatile markets once again," Gibbs said.
As the market has slipped into a period of calm, the amount of volatility expected over the next 30 days — as measured by the CBOE Volatility Index, or the VIX — has fallen dramatically.
In fact, on Monday, the VIX closed below 14 for the first time since Aug. 18. That's the day before the start of the August swoon.
Of course, it would be absurd to predict a market drop merely on the basis of a decline in volatility. As the past few years have shown, low-volatility periods can last for extremely long periods of time. In fact, the S&P failed to rise or fall 1 percent or more in 26-straight sessions stretching in late 2014.
(Excerpt) Read more at cnbc.com ...
It’s called ‘consolidation.’ The people who want to buy have bought, and those who want to sell have sold. The direction it takes next depends on the overall strength of the economy. If you believe the delusional 4.5% unemployment balloon the administration is floating, then there’s a good chance for a bullish continuation. If you don’t, stay long or in cash.
I am Staying in short term bonds paying 2.3%. Better than CD’s and MMF’s paying 0.1%.
I hear you. My $10000 money market fund took over a year to return one dollar. Insane.
I have been making a lot of money in gold -buying and shorting. Problem is I have to be awake at the start of asian market and london. It is a highly manipulated market. I need to take a break from it but next week should provide wild swings. I can get my rem sleep later.
Agreed.
The ONLY Buyer of Stocks Just Stopped Buying
Also, he makes a great point here:
Locked in.
Look at the positive side...no 1099’s received and therefore no income tax...just kidding. Been there done that.
Heh. That’s one way of looking at it.
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