Trader alert: A “runaway” move in stocks could be happening now
“All the pieces are starting to fall into place…”
We are now at the point in the bull market where traders think that
stocks are bullet proof. Back in December, I warned this was coming.
I said at the time that this round of QE was going to be different. That it would have a much bigger effect on the market than the analysts were expecting. I remember at the time analysts were claiming each round of QE was having less and less effect.
I was confident that QE3 and QE4 would usher in the euphoria phase of the bull market. Actually, Bernanke is putting in place the final components to bring about the end of the bull. Let me explain.
QE infinity has, and is generating a runaway move in the stock market. The problem with a runaway move is that it’s artificial. Anyone with a shred of common sense knows what’s driving this move and it isn’t the economy.
Bernanke is crazy if he thinks the stock market is acting normal. Well, this is the guy that said the subprime crisis was “contained.” Any artificial move is destined to end badly, just like the artificial housing market ended badly.
The problem with runaway moves is…
I said at the time that this round of QE was going to be different. That it would have a much bigger effect on the market than the analysts were expecting. I remember at the time analysts were claiming each round of QE was having less and less effect.
I was confident that QE3 and QE4 would usher in the euphoria phase of the bull market. Actually, Bernanke is putting in place the final components to bring about the end of the bull. Let me explain.
QE infinity has, and is generating a runaway move in the stock market. The problem with a runaway move is that it’s artificial. Anyone with a shred of common sense knows what’s driving this move and it isn’t the economy.
Bernanke is crazy if he thinks the stock market is acting normal. Well, this is the guy that said the subprime crisis was “contained.” Any artificial move is destined to end badly, just like the artificial housing market ended badly.
The problem with runaway moves is…
Why some of the world’s best-known economic advisers agree on one frightening prediction
Kyle Bass, Nouriel Roubini, Jim Rogers, Jim Rickards, and Many Others Forecast War and Unrest
“An inevitable consequence of the current global economic situation…”
Kyle Bass, Martin Armstrong, Larry Edelson, Charles Nenner, James Dines, Nouriel Roubini, Jim Rogers, Marc Faber and Jim Rickards Warn of War
We’re already at war in numerous countries all over the world.But top economic advisers warn that economic factors could lead to a new world war.
Kyle Bass writes:
Trillions of dollars of debts will be restructured and millions of financially prudent savers will lose large percentages of their real purchasing power at exactly the wrong time in their lives. Again, the world will not end, but the social fabric of the profligate nations will be stretched and in some cases torn. Sadly, looking back through economic history, all too often war is the manifestation of simple economic entropy played to its logical conclusion. We believe that war is an inevitable consequence of the current global economic situation.Martin Armstrong writes this week:
We will be updating the Cycle of War. Obviously, it is time once again. Especially since that model also hit to the day 3 times in a row.Similarly, Larry Edelson wrote an email to subscribers entitled “What the “Cycles of War” are saying for 2013?, which states:
Since the 1980s, I’ve been studying the so-called “cycles of war” — the natural rhythms that predispose societies to descend into chaos, into hatred, into civil and even international war.
I’m certainly not the first person to examine these very distinctive patterns in history. There have been many before me, notably, Raymond Wheeler, who published the most authoritative chronicle of war ever, covering a period of 2,600 years of data.
However, there are very few people who are willing to even discuss the issue right now. And based on what I’m seeing, the implications could be absolutely huge in 2013.
….
Suckers! Tech Execs Selling Stock at Record Pace
Insider selling at the biggest technology companies hit a record pace over the last six months even as investors snatched up shares, pushing the Nasdaq CompositeIndex to a 12-year high.
More than 55 million shares were sold versus 1,780 shares bought for a sell-buy ratio of an eye-popping 31,109 to 1 at the 10 biggest tech companies, includingMicrosoft, Oracle and Qualcomm, according to Alan Newman, editor of the Crosscurrents newsletter and market analyst for 49 years.
“Insider activity confirms the rosy scenario indicated by prices is only an illusion,” wrote Newman in his latest letter. “Insiders have no confidence in their own companies. While prices appear to be indicating an all clear, we remain in one of the most egregiously speculative phases ever seen.”
…
The ‘Dumb Money’ Goes for Yield
ROSENBERG: It Looks Like Demand For US Housing Is Cooling Off
Crash Indicator: Mom and Pop Take the Plunge Back Into Stocks For Fear of “Being Left on the Sidelines”
Obama’s budget signals the retreat of US government
Five days make or break the year for market returns.
Tom Keene and Mike Holland with Bloomberg’s Single Best Chart.
April 1 (Bloomberg) — On today’s “Single Best Chart,” Keene and portfolio manager Michael Holland look at timing the market and the importance of best gain days.
More than 55 million shares were sold versus 1,780 shares bought for a sell-buy ratio of an eye-popping 31,109 to 1 at the 10 biggest tech companies, includingMicrosoft, Oracle and Qualcomm, according to Alan Newman, editor of the Crosscurrents newsletter and market analyst for 49 years.
“Insider activity confirms the rosy scenario indicated by prices is only an illusion,” wrote Newman in his latest letter. “Insiders have no confidence in their own companies. While prices appear to be indicating an all clear, we remain in one of the most egregiously speculative phases ever seen.”
…
The ‘Dumb Money’ Goes for Yield
ROSENBERG: It Looks Like Demand For US Housing Is Cooling Off
Crash Indicator: Mom and Pop Take the Plunge Back Into Stocks For Fear of “Being Left on the Sidelines”
Obama’s budget signals the retreat of US government
TIMING THE STOCK MARKET: Why Only 5 Days Matter
Five days make or break the year for market returns.
Tom Keene and Mike Holland with Bloomberg’s Single Best Chart.
April 1 (Bloomberg) — On today’s “Single Best Chart,” Keene and portfolio manager Michael Holland look at timing the market and the importance of best gain days.
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