Posted on 10/12/2016 6:49:29 PM PDT by Enlightened1
HSBC's technical-analysis team has thrown up the ultimate warning signal.
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on "RED ALERT" for an imminent sell-off in stocks given the price action over the past few weeks.
Gunn uses a type of technical analysis called the Elliott Wave Principle, which tracks alternating patterns in the stock market to discern investors' behavior and possible next moves.
In late September, Gunn said the stock market's moves looked eerily similar to those just before the 1987 stock market crash. Citi's Tom Fitzpatrick also highlighted the market's similarities to the 1987 crash just a few days ago. On September 30, Gunn said stocks were under an "orange alert," as they looked to him as if they had topped out.
And now, given the 200-point decline for the Dow on Tuesday, Gunn thinks the drop is here.
"With the US stock market selling off aggressively on 11 October, we now issue a RED ALERT," Gunn said in the note. "The fall was broad-based and the Traders Index (TRIN) showed intense selling pressure as the market moved to the lows of the day. The VIX index, a barometer of nervousness, has been making a series of higher lows since August."
Gunn said the selling would truly set in if the Dow Jones Industrial Average were to fall below 17,992 or if the S&P 500 were to dip under 2,116. The Dow closed at 18,128 on Tuesday, while the S&P settled at 2,136.
"As long as those levels remain intact, the bulls still have a slight hope," Gunn said.
(Excerpt) Read more at businessinsider.com ...
“I remember when the Dow broke a thousand for the first time...”
________________________________________________________
I remember that, too.
I remember sitting in the car outside a small market across from the Airport Marina Hotel in the Westchester section of Los Angeles, near the airport (LAX).
My father had just come out of the market and was pointing at a newspaper box with a big smile on his face.
The newspaper said, DOW HITS 1,000!
It must have been 40 years ago.
Interestingly enough, the Airport Marina Hotel that I mentioned was where Col. Greg “Pappy” Boyington and the Japanese pilot who shot him down in WW II met for the first time since the war.
Some years later, I saw that Japanese man at a Blue Angels Air Show at Point Mugu Naval Air Station near Oxnard, California.
He was wearing golf clothes and sitting at a table where he was selling his book, “Bye Bye Black Sheep.”
At the time, I didn’t understand who he was, otherwise I would have struck up a conservation with him.
I just don't think SS will go away anytime soon. Both parties seem to like socialism at some level and this program even has the word "social" in it! Politicians are cowards and will just borrow more and more money to keep an 'entitlement' going. However I think they will keep raising eligibility ages and crap so you get less and less of your money back. So I don't think SS goes away but just becomes less and less of an income stream you can count on. But who knows?
They don’t call it the “Third Rail of Politics” for nothing.
“...invest regularly over the course of your working years and ignore the ups and downs.”
Good advice...but what about retirees? Savings accounts, money market accounts, and CD’s paying near 0%. What do you suggest for them?
Retirees can just coast on the massive wealth that they have had the unique opportunity to accumulate during the unprecedented economic growth and full employment of the post-war years.
Regards,
There will be a dramatic decline in stock prices.
There will be a dramatic increase in stock prices.
Both of my predictions will be true.
i’ve just decided to up both the wife’s and my 401ks.
SS isn’t a given down the line. thanks
Ooh, you're going to piss off some people! But I agree with you, many had a chance and blew it. I know quite a few who sat idly by, blew their money on useless crap, and hocked themselves deep into a hole. Now they're old and it's too late to do much to build wealth. Sad.
The guy I deal with to manage my IRAs just took a boatload of his money out of the market.....
There will be another major world war.
You are going to die.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.