3 Up Gaps That Must Fill

3 Up Gaps That Must Fill

When it comes to the stock market, never say never because every possible market event will happen at least once. Especially events you least expect.

Here’s one that is positive for your portfolio.

There are specific events that have been proven through over 200 years of actual stock market history.

In fact, this one is proven beyond a shadow of a doubt and you can make money with it very soon:

Up & Down Gaps Close 91% Of The Time!

For those of you who do not know what a gap is, and how important it is, here is a simple explanation.

Let’s now look at the current chart below:

As you can see, the  Standard Poor’s 500 chart above reveals 3 Up Gaps in price that, at a better than 91% chance will eventually fill to the downside. The reason that pushes this to the ranks of “it will now LIKELY move sooner than later is the fact that all 3 Up Gaps occurred within 3 months and this is almost unprecedented.

Watch out below. We are not trying to scare you, quite the opposite, we are giving you a kind warning.

So lets add it up:

“A 91% chance of filling every market gap up or down for the last 200 years?” 

Prepare for anything because the last time more than 3 Gaps were closed within only 5 weeks was February 2020! 

What is hard to imagine is that the rise lasted 1,458 days for the 5 Up Gaps to be created between December 2016 and February 2020. It took exactly 22 Corona-Crash days to close (fill all 5) to the downside.

The point is clear. This is not a question of will the current 3 Up Gaps fill, but when will they fill and will you avoid the decline?

You must be ready to avoid the coming decline unless you have 1,458 more days to wait for it to come back to break even.

As we already demonstrated to our members on January 18, 2020 with a market Red Light exit signal, InterAnalyst will warn and protect our members when it turns down again.

Has The U.S. Economy Plunged Into A Depression?

Has The U.S. Economy Plunged Into A Depression?

“Face reality, and that means admitting that “the U.S. economy has plunged into a depression.”

This is already the worst economic downturn that America has experienced since the Great Depression of the 1930s, and we are right in the middle of the largest spike in unemployment in all of U.S. history by a very wide margin.

Of course, it was fear of COVID-19 that burst our economic bubble, and fear of this virus is going to be with us for a very long time to come.  So we need to brace ourselves for an extended economic crisis, and at this point, even Time Magazine is openly referring to this new downturn as an “economic depression”.

Needless to say, there will be a tremendous amount of debate about how deep it will eventually become, but everyone should be able to agree that our nation hasn’t seen anything like this since before World War II.

In order to prove my point, let me share the following 10 numbers with you…

#1 According to a study that was just released by the National Bureau of Economic Research, more than 100,000 U.S. businesses have already permanently shut down during this pandemic, and that represents millions of jobs that are never coming back.

#2 The Federal Reserve Bank of Atlanta is now projecting that U.S. GDP will shrink by 42.8 percent during the second quarter…

“A new GDP forecast from the Federal Reserve Bank of Atlanta for the three months through June estimates an unprecedented drop of 42.8 percent. The bank describes the data as a “nowcast” or real-time, compared with the official government report of GDP, which is dated. The first-quarter preliminary data, which showed a 4.8 percent dip, included a limited period of impact from COVID-19.”

#3 On Friday we learned that U.S. retail sales were down 16.4 percent during the month of April, and that is a new all-time record.

#4 U.S. factory output was down 13.7 percent last month, and that was the worst number ever recorded for that category.

#5 U.S. industrial production fell 11.2 percent last month, and that represented the worst number in 101 years.

#6 On Thursday, we learned that the number of Americans that have filed initial claims for unemployment benefits during this pandemic has risen by another 2.9 million, and that brings the grand total for this entire crisis to 36.5 million.  To put that number in perspective, at the lowest point of the Great Depression of the 1930s only about 15 million Americans were unemployed.

#7 According to the Federal Reserve Bank of Chicago, the real rate of unemployment in the U.S. is now 30.7 percent.

#8 According to a survey Fed officials just conducted, almost 40 percent of Americans with a household income of less than $40,000 a year say that they have lost a job during this crisis.

#9 One study has concluded that 42 percent of the job losses during this pandemic will end up being permanent.

#10 According to a professor of economics at Columbia University, the U.S. homeless population could rise by up to 45 percent by the end of this calendar year.

We have never seen economic numbers this horrifying, and more awful economic numbers are coming in the months ahead.

At this point, things are so bad that even Fed Chair Jerome Powell is openly admitting that he doesn’t really know how long this new economic downturn will last…

“This economy will recover…We’ll get through this. It may take a while. It may take a period of time. It could stretch through the end of next year,” Powell said during a rare televised interview that aired on “60 Minutes” Sunday night. “We really don’t know. We hope that it will be shorter than that, but no one really knows.”

In the months ahead, there are a few sectors that you will want to keep a particularly close eye on, and one of them is the commercial real estate market.  The following comes from Zero Hedge

“Fast forward to today, coronavirus outbreak, and the ensuing lockdown, has essentially frozen the commercial real estate market. Buildings that were once used for restaurants, offices, hotels, spas, and or anything else that is classified non-essential have seen soaring vacancies.

This is single handily sending the commercial property market into chaos. As vacancies soar, tremendous downward pressure is being put on almost every asset class tied to commercial real estate.

The latest TREPP remittance data compiled by Morgan Stanley showed a quarter of all commercial mortgage-backed securities (CMBS) could be on the verge of default.”

I am personally convinced that we are on the precipice of the greatest commercial real estate implosion in American history.

As the dominoes tumble, it is going to send wave after wave of devastation through the financial industry, and it is going to make the subprime mortgage meltdown of 2008 look like child’s play.

But at least bankruptcy lawyers will have plenty of work.  Last week we learned that J.C. Penney filed for Chapter 11 bankruptcy protection, and of course the bankruptcies that we have seen so far will just be the tip of the iceberg.

I think that politicians all over America are going to deeply regret overreacting to COVID-19, because nobody is going to be able to put the pieces back together now that our economic bubble has burst.

Sadly, very few people understood how shaky our debt-fueled economic “boom” was, and ultimately it didn’t take that much to push us into a new economic depression.

And now every additional crisis that comes along is just going to escalate our economic troubles.  This is going to be one very long nightmare, and there will be no waking up from it any time soon.

Even before COVID-19 came along, homelessness had become a massive problem in many of our major cities, and now tent cities are rapidly multiplying in size.

There is going to be so much economic pain in the months ahead, and it could have all been avoided if we had made much different choices as a nation.

But we didn’t, and so now we all get to pay the price.

Mr. Snyder wrote this article and I respect his opinion. I am not taking issue with his story, but he is a respected conservative voice in a world of noise.

So, I ask you, what if he is correct in his judgment and collapse is coming sooner than later?

Are you prepared for what is going to happen to your retirement and investment account values?

Are you sheltered from those accounts declining 40%? 50%, 60%, or more.

The Wealth Preserver Membership can protect your account from any stock market collapse. Please know that until it does collapse, your investments continue to grow as usual. 

6 MUST FILL TRADING GAPS

6 MUST FILL TRADING GAPS

The last time I wrote about 6 Must Fill Trading Gaps was at the end of March, however our members were getting notifications in 2019 and into (01/3102/24, 2/28, and 3/02)  regarding Gaps and the potential consequences of ignoring them.

We all know what happens to the market if we ignore upside gaps…THE GAPS FILL TO THE DOWNSIDE.

The recent crash closed all the gaps dating back through 2018 before we started are ascent again.

I have been listening to the talking heads on Fox Business, CNN, Bloomberg, Yahoo Finance, and many others. The all ask if this rally is just a long journey back up to eventual new highs. Plain and simple, their answers must be scripted. I personally know 2 of them and they are intelligent and practiced and know that 91% of all Gaps fill.

These well trained “guru’s” can easily look to their charts and know whats coming.

If you have downloaded and read our Gaps guide, then you know the 6 Must Fill Trading Gaps are going to eventually close and are already prepared for it.

I was having a nice cold Bud chatting socially with my next door neighbor and he asked me when to expect the Gaps to fill. My answer is always the same so brace for it. “I have no clue.”

What is more important is the recognition that dating all the way back to 2018 all the gains you made were gone in a matter of a few weeks. Now that it has risen 50% from the bottom of the current decline, are you ready to fill those gaps near the bottom?

If you are not ready for a retest, then grab a self paying subscription, or a bottle of Rolaids because it is coming. At a rate higher than 91%, the Green Gaps in the chart above will refill which means the market is coming back down.

History proves it. 

If this is even remotely close to the typical decline dating back to the 1600’s, its best to avoid the declining and simply jump back in close to the bottom.

Why Mark Mobius says the stock market hasn’t seen an ‘absolute bottom’ yet

Why Mark Mobius says the stock market hasn’t seen an ‘absolute bottom’ yet

Emerging-markets investing pioneer Mark Mobius made those remarks Tuesday in an interview with CNBC, putting him in the investing camp that expects an inevitable cascade of brutal economic data and corporate earnings hasn’t been fully discounted by investors.

Mobius, who founded Mobius Capital Partners in 2018 after a three-decade run at Franklin Templeton Investments, said corporate earnings would be “pretty bad” and that while some bargains have emerged, investors should keep some cash ready to deploy in the event of a further market downturn.

U.S. stocks hit all-time highs in February, then plunged into a bear market as the global spread of COVID-19 forced the U.S. and countries around the world to largely lock down their economies in an effort to contain the outbreak. Stocks have taken back a large chunk of lost ground since March 23, however, with recent gains tied to expectations the pandemic is near its peak, turning attention to efforts to reopen economies.

Market bulls have argued that the unprecedented nature of the shock and the massive response from the Federal Reserve, other central banks, and governments have rendered most comparisons to past bear markets debatable.

Others have cautioned that stocks are largely sticking to the bear market script.

“Although there are some opportunities to buy, I would say it’s probably a good idea to keep some powder dry for another downturn,” he said. “We might see a double bottom.”

Is The Dead Cat Bounce Over?

Is The Dead Cat Bounce Over?

March 2020 saw one of the quickest bear markets in history as coronavirus shook the world and the S&P 500 dropped 34% in about five weeks.

Since then, the market has reversed and rallied about 24% from its low meaning it’s now down only 19% from the February peak.

The market is now trading at the same level it did in June 2019 despite all the carnage surrounding COVID-19. It’s also approaching a key resistance area around $2800.

Although there are some positive signals for bulls we think the market could move back towards its recent lows short-term. A bear put spread gives a good opportunity to play this view.

Relief Rallies Are Common In Bear Markets

The recent rally is encouraging for bulls but if we look back at previous market crashes it’s obvious to see that relief rallies are a common occurrence in bear markets. They have been called Dead Cat Bounces.

During the 2008 crash, there were two relief rallies of over 15% before the March 2009 low.

During the dotcom crash, stocks rallied more than 15% three times before the market finally bottomed. 

And during the 1973-74 bear market there were three relief rallies of over 10% which preceded a long period of choppy trading.

Meanwhile, during the Great Depression, there were numerous relief rallies and it took the market 26 years to regain it’s all-time high.

It’s worth noting that the 1987 and 2011 bear markets saw no relief rallies but remember that neither of these bear markets actually coincided with an economic recession.

At this point, not only is a recession nailed on but it’s likely to be a severe recession with some saying it could be on a par with the Great Depression. 

Given this, it seems appropriate that there is more pain to come and that the stock market is not going to simply rebound in a straight line over the next few weeks and months.

How Much Should The Market Fall?

Historically, the average bear market has lasted around 22 months and the average drawdown has been -39%. 

If we are to believe that this current crisis is worse than average (which it appears to be) then the current drawdown of -19% (albeit a pullback from -34%) seems mild.

If that’s true, then the question becomes how much damage is enough?

Answers come in many different forms. None are perfect but they can all be taken into account. 

Citigroup analysts say that a good rule of thumb is for stocks to fall roughly the same as corporate earnings. They are forecasting falls in US earnings of around 50%, therefore the stock market is capable of falling by that amount as well. (FT)

Another answer is to look at the cost of the virus in terms of lost GDP. Unsurprisingly there is a wide range and a lot of uncertainty here too.

Estimates from Bloomberg put the cost at $2.7 trillion while the UN predicted only $1 trillion in a report from early March.

To put that in perspective, the 2008 crisis (which saw markets dive by 57% from their peak) is said to have cost the US about $2 trillion in lost economic output according to Moody’s Analytics. (WP).

In terms of dollar value, the coronavirus crisis could end up as costly as the 2008 crisis and some of the recent data has been right up there with the Great Depression. 

US jobless claims, for example, have been truly abysmal.

Some economists think unemployment could surge to 20% which would be much higher than in the 2008 crisis when unemployment peaked at around 10%.

Several economists are forecasting an economic contraction of between 6-8 per cent which would make it worse than the 4 per cent contraction seen in 2008/9.

However, a lot of the forecasting depends on the impact of social distancing and there is still a great deal of uncertainty.

Furthermore, putting a dollar value on the cost of a crisis is difficult when any cost necessarily depends on the reaction of the stock market resulting in a vicious cycle.

The financial crisis lingered for a long time but the coronavirus crisis could be short-lived if social distancing proves effective.

If the virus is contained effectively then it could end up costing only a fraction of the GDP that was lost in the 2008 crash.

On the other hand, if estimates do not account for second and third waves of the virus (or numerous knock-on effects caused by financial stress) then they could miss the mark.

The only data we have really seen so far are the jobs numbers. We are yet to see companies report earnings and the truth is that we are about to see a tidal wave of terrible earnings reports.

Central Banks Have Our Backs Faster This Time

That said there is still the case that central banks have moved quickly to inject stimulus into the market to avoid financial contagion. Much more quickly than they did in 2008.

This stimulus has been large and so far been effective at keeping the financial system ticking over and helping to reduce volatility in the stock market.

Health-wise, testing has been ramped up and new virus cases have definitely been flattening.

So there is definitely a case to be made for bulls that the -34% drop represents the bottom and that investors are now looking ahead towards a recovery in 2021.

However, even if the market did hit a bottom last month there are bound to be some big bumps along the way to a recovery and there is simply too much uncertainty right now to say that the damage is done.

What’s A Fair Price?

Howard Marks said in his recent memo that the market is probably fairly priced for an optimistic view of the crisis and I think that sounds about right.

In other words, if you believe that cases are coming down, the virus is on the way out and the economy can reopen in a few weeks time, then stocks are probably fairly priced.

But if you believe that the virus is not under control and the lockdown will go on longer than expected (or that there will be future waves with more lockdowns) then stocks are expensive and have some room to fall.

At this point, it’s worth remembering that the last serious pandemic we had was the Spanish Flu which lasted about 18 months from March 1918 to the summer of 1919. In that period the virus came in three waves with the second wave being the deadliest. (TIME).

It seems unlikely that this current virus is going to just blow over and things are going to go back to normal any time soon. Especially considering the poor handling that governments have shown so far. This thing could drag on for months with second and third waves.

With that being the case, I think there is a strong argument that the market will at least move back towards it’s recent low even if it doesn’t lurch too far below it.

Where Is The Risk?

In times like these I find it helps to think simply and consider ‘where is the risk’?

Is it riskier now to buy, after a 20% rally off the low, or is it riskier to short, with the possibility of a V-shaped recovery?

For me, the risk here is clearly to the downside.

With so much uncertainty about the staying power of the virus and so much bad news yet to come, it would be risky to dive into the market when it is only 19% from it’s all-time high.

Given the gravity of the current crisis and the fact sharp rallies often occur in bear markets, I’d say the chance of us moving back to the recent low is perhaps 30% to 50%.

Final Thoughts

The bottom line is that this is a nasty environment for investors with unprecedented economic shutdowns.

This rally has the hallmarks of a dead cat bounce. It is likely to be a complicated mix of short covering, mechanical buying and optimism that the Fed has everything under control.

We will recover from this crisis eventually but I think it will be a while before the Slingshot will be ready. 

Here’s When The Bear Market Rally Ends

Here’s When The Bear Market Rally Ends

This Bear Market Rally is still not complete but should be shortly and Here’s When The Bear Market Rally Ends.

We are actually still in a bear market rally with today clearly being another ‘green’ day, it is likely the rally will continue until the herd jumps in again.

It is not uncommon what-so-ever to re-touch near a 50% level during voracious bear markets, however, at this point you can actually argue the market is more over-valued now given the environment than when the Standard & Poor’s was near 3400 ironically enough.

The markets are already trying to price in a possible slowdown in the COVID-19 pandemic. But, even if the Pandemic miraculously disappeared today, the massive economic shock won’t disappear anytime soon.

Major indices all over the world have already plummeted into Bear Territories and the recent rally is simply a correction. In fact, if you look at previous bear markets, you will find plenty of temporary Bullish rallies within the larger Bearish move.

So, do not get emotionally carried away by the bull run right now. Shortly, we will be dealing with bad economic data, a bigger than 2008 recession (likel):
  • Falling Output. Less will be produced leading to lower real GDP and lower average incomes. Wages tend to rise much more slowly or not at all.
  • Unemployment. The biggest problem of a recession is a rise in cyclical unemployment. Because firms produce less, they demand fewer workers leading to a rise in unemployment.
  • Higher Government Borrowing. In a recession, government finances tend to deteriorate. People pay fewer taxes because of higher unemployment and they need to spend more on unemployment benefits. This deterioration in government finances can cause markets to be worried about levels of government borrowing leading to higher interest rate costs. This rise in bond yields may put pressure on governments to reduce budget deficits through spending cuts and tax rises. This can make the recession worse and more difficult to get out of. This was particularly a problem for many Eurozone economies in the aftermath of 2009 recession.
  • Hysteresis. This is the argument that a rise in temporary (cyclical) unemployment can translate into higher structural (long-term) unemployment. hysteresis
  • Falling asset prices. In a recession, there is less demand for buying fixed assets such as housing. Falling house prices can aggravate the fall in consumer spending and also increase bank losses. This fall in asset prices is particularly a feature of a balance sheet recession (e.g. 2009-10) recession.
  • Falling share prices. Lower profits lead to lower levels of share prices.
  • Social problems related to rising unemployment, e.g. higher rates of social exclusion.
  • Increased inequality. A recession tends to aggravate income inequality and relative poverty. In particular, unemployment (relying on unemployment benefits) is one of the largest causes of relative poverty.
  • Rise in Protectionism. In response to a global downturn, countries are often encouraged to respond with protectionist measures (e.g. raising import duties). This leads to retaliation and a general decline in trade which has adverse effects.

These factors are not at the top of the news yet cycle right now. But I assure you that when the Corona-Virus takes a back seat to the Presidential Election, the reality will set in and we will witness a new test of the bottom.

So, such rallies as the one we are seeing now will be sold aggressively and markets will plummet into fresh lows. Until a 50%-55% drop has happened, we can’t start thinking about bottom formation.

Conservative investors should continue to follow the Wealth Preserver signals as is proven historically, the signals will protect you from every market crash that matters.

As for Daily and Weekly traders, they should follow their Wealth Maximizer and Maximizer Pro signals according to the Pro’s 5 Minute Secret.

Keep Calm And Run For The Hills

Keep Calm And Run For The Hills

As an investor, you need to Keep Calm And Run For The Hills.

Everything was a classic.

The financial industry reported that a record number of brokerage accounts were opening and new investors were running to their local discount broker to join the club. Of course, when this happens, it always happens at the end of a bull run sucking in the “average investor” who is always late!

In fact, I got the message loud and clear when a buddy, who never invested in his life asked me… “So, how do I buy shares.”

Honestly, I became a bit upset as this always tips off the professional. The know when the armature wants in, it is time to look at a market a correction or a  bear is lurking.

We all now know, the markets fell off a cliff that we call the Corona-Crash.

This is how we initially knew it was coming. But then the chart below warned of the coming collapse.  In addition, this chart helps answer the question, should you get back in now?

Let me explain…

As you can see in the Dow Jones chart, the market has taken a big swift decline down. And now with a bit of a rally, people are wanting to jump back in. Should you?

Before you jump back in, look at the lower half of the image called the Stochastic.

What you notice is that it is a supporting indicator that will help you to invest at the right time. The right time is when the Blue Stochastic RSI line is above the Red line and BOTH are below the 15 level!

Looking at the action today, you are clearly warned not to invest because its TOO LATE. Clearly, the same stochastic chart shows that the level is now above 85 and the Red Line is above the Blue line.

Once this current rise tops and your Maximizer Pro shows a sell, you will see the markets rollover into a new decline as has always occurred.

See the source image

This becomes very clear if you look back and notice the October – January 2018 market decline relative to the “greed” based stochastic. By looking at both together you can easily see when to get in and out of the market.

As for today, if your buddy asks, “Hey, which discount broker do you use?” 

Take a quick look at the stochastic charts, call your broker, keep calm and run for the hills!

Another Leg Down?

Another Leg Down?

We have seen a hefty relief rally but does Another Leg Down loom? For those who are Wealth Maximizer Pro members, you have caught the nice profitable rally, contratulations.

I am seeing some “disturbing” signs that the market is very close to re-testing the lows that we previously have made, or, will it form another leg down loom?.

At the very least, it is 98% certain we will come to test the lows around 2250 at any moment in time. It is possible that we have another final leg down, and I believe that we likely will.

It is important for you to remain patient instead of panic buying and falling into bull trap.

During this last leg down, simultaneously, Gold and Silver will likely sell-off for liquidity reasons. People are now and will continue to liquidate their hidden savings.

Here’s why we know that the last leg down is coming:

The VIX remains incredibly elevated (60+) despite big pops in the markets and has not subsided. This tells you another sell-off is looming. Whats more, it’s supported by many other technical and fundamental factors.

For the market to continue up and ignore these factors would be unprecedented.

Prepare for another drop to the eventual bottom.

Crono-Crash & The Slingshot

Crono-Crash & The Slingshot

Livio,

I exited with the Wealth Preserver on the on March 2nd.  The last couple of bullish days brought to mind the Slingshot, are we there and have we missed the first 2 days. In your recent Celente video post you mentioned we’re entering into a global depression which may be even worse than the Great Depression.

Before all that happens is it possible we see DOW tumble another 5K-10K?

There seems to be an incredible amount of liquidating-at-all-costs mentality at the moment. I worked on an equity desk during the 2008 crisis, and currently at a very small non-bank FX dealing desk and have never seen anything like this. Your feedback is always appreciated.

Thanks,
Victor

“Great Question Victor.

The simple answer is NO.

The worst-case scenario appears to be testing the reversal technical line in the 15,000 level and do not see a drop to 5-10K. That is way too far for a slingshot. 

I see the slingshot build and breakout to new highs by 2023.

However, let’s tale a look at history to guide us on recovery times with similar drops to our current CronoCrash. 

Look at the two charts below.

What you see is that it took 65 months from the 2007-2009 Crash to get back to even.

The 1987 Crash appears to be a likely type of pattern from a timing perspective to our current Crono-Crash. That was a 53% decline and took 24 months to break even.

The 2000 -2003 Bear Market was a 3 year 54% decline and took 81 months to break even. 

If we were to fall on par with those declines, we would be looking at a drop to the mid-15000 level.

Because InterAnalyst members s stepped aside (red signals)  for most of the Corona-Crash, they will miss all those months of recovery just to get back to even.

More importantly, while everyone else is back to even, those who stepped aside will be 100% – 400% ahead of those buy and hold investors who did not step aside of the Corona-Crash.

As for the future, when we get back in (green signal) we could reach the test of just below the 40,000 level happening in 2024.

Marxism, Buffett, Dalio, Stalin & The Bottom

Marxism, Buffett, Dalio, Stalin & The Bottom

As always, the Democrats just can’t stand the fact that Trump might take credit for helping people and have blocked and relief package. Democrats claimed in true Marxist fashion in the Senate that the GOP’s push to set aside $425 billion for loans to help select companies and industries, dubbing it a “slush fund” for the Treasury to direct as it sees fit. They said the bill is tilted toward corporations instead of working people. What they fail to even address is that those working people rely upon small businesses the Democrats hate so much which provides 70% of their employment.

Small businesses have been ordered to close down. They cannot pay employees and nobody has suspended their rents. The destruction of small businesses will be devastating to the economy and this is all about playing politics. I am saddened.

The closing for March, if down from last Friday may spark more serious liquidation as Hedge Funds dump everything and some may more to suspend withdrawals as is taking place in European bond funds. The Solus Alternative Asset Management LP, Hedge Fund, known for its investment in retail chain Toys “R” Us, informed its investors that it is shutting its flagship fund and will restrict redemption’s as it works to sell off holdings.

Even Warren Buffett’s Berkshire Hathaway may have lost more than $70 billion on its 10 biggest investments. This type of decline shows that the buy-and-hold strategy fails in a serious market correction. Ray Dalio, who will go down in history for his proclamation that “cash is trash” on January 21, 2020, has lost probably more than $4 trillion in Bridgewater.

Where the 2007-2009 Crash took out Lehman Brothers and Bear Stearns, this time we will see Hedge Funds go down in flames. This undermines liquidity and makes the market vulnerable because market-makers pull back just to survive. 

We are headed into a Global Recession which could become even worse than the Great Depression. Here’s why?

This time we have politicians taking advice from the medical industry. The medical people who do not understand that you cannot shut down the economy on this grand scale because of the devastation is insurmountable to people, their jobs, and wiping out their pensions. This economic shut down on such a massive scale is far worse than if the Corona death toll was even 8%.

Never before has the economy been crashing with such speed for this is orchestrated by people who only look at how diseases spread and not how the economy contracts.

See the source image

Yes, it is true that if we all stayed home we can even beat the common cold. But the post-coronavirus world is going to be far more damaging to the future than any of these people understand.

To have the Democrats playing politics in the middle of the is just insane.

Liquidity is collapsing everywhere. Bank failures rose after the 1929 crash because liquidity failure with a declining velocity = less money with even less money moving around the economy = recession and potential depression.

A monthly closing on Oil below $20.50 will warn of the economic recession ahead as people stay home and this command of quarantine and social distancing may undermine the very cooperation which is the foundation of civilization. 

If people are afraid to interact and suspect everyone, that is precisely the atmosphere created by Stalin during the Communist era.  We are voluntarily limiting and quickly losing all rights including the freedom of assembly. Even Twitter has shut down those who dissent against the coronavirus and this is calling into question our freedom of speech as well.

InterAnalyst will help guide everyone out of this time of insecurity and political misdirection via selfish ignorance.

Look at the chart below:

Finding The Bottom

As the markets find the bottom, it will be laced with volatility and insecurity with the media frightening you to the point of insecurity. this is not done for YOU as an InterAnalyst member. It is done for those Buy and Holders who never exited at the top and now have been scared into submission. 

However, as an InterAnalyst member,  you recognize that it likely will become the best entry point of your life! Yes, insecurity will be there but you know the stock market is going nowhere!

The stock market never lies and it always returns when there is “blood in the street” and the bottom arrives.

Thus, follow the guideline to a risky to safe entry back into the coming slingshot move.

Step One: Wealth Maximizer Pro (Daily Charts)

When the Daily chart delivers a green signal, jump for joy, then choose to enter a position or wait to see if the daily signal is holding for a few days for stability. If we are at or close to a bottom, volatility will be very high so prepare for it if you choose to trade it.

Step Two: Wealth Maximizer (Weekly Charts)

When the Daily is followed by a Weekly green signal you know that the economy is attempting to settle and gain strength.

You should begin to feel a bit more secure. Entering a bullish position here is a bit less risky because the weekly signal has some economic strength attached rather than pure daily volatility. You can even wait another week to see if it develops more strength.

Step Three: The Wealth Preserver (Monthly Charts)

Once the Green signal has elevated from the Daily to the Weekly and the Weekly has moved into a second or third week of a bullish trend, you may select to beat the green monthly Wealth Preserver signal by entering a bullish position before month end.

If you look at The Wealth Preserver chart above, ask yourself whether you remember the days or weeks Just prior to the bottom green signals in 2003 and 2008?  NOPE, right. You don’t remember them, but what you would have remembered is getting in after preserving your money at the prior top, before the full devastating decline those bear markets delivered.

The same is true now. 

So, the bottom is going to come. You must be patient, it will arrive, it always does!

Enter in when you feel most comfortable, but recognize that the Wealth Preserver has proven to be deadly accurate at economic turning points.

The phrase to be true: “Better Safe, than Sorry!” 

Obviously, entry at any point has its risks, but as you look closely at The Wealth Preserver chart above, making a move using the monthly charts is rarely a poor decision…ESPECIALLY OFF THE BOTTOM.

This time it is coming with a slingshot.

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