In recent iterations of this column I’ve been warning about my fears that virtually everything is beginning to point towards a bear market, even though pretty much every so-called “expert” out there has been calling this healthy action.
Now there’s no denying the increasingly bearish action in my mind – no new high for the stock market in months, descending peak and valley points in the short-term, and the final straw may have just broken.
Let me show you the evidence pointing towards the next stock market crash, and how you could actually make big money from it…
I enjoy writing this column as I watch the market move, which is why I’m currently doing so in the middle of the day on Friday.
And let me just give you some insight into my thought process right now…
1. Based on the trends I’ve been warning you about recently, I’ve been more and more skeptical about the current stock market.
2. 5 of the past 6 days have been down days, and the last 2 were HUGE.
3. The market finally broke down below the 2,000 level as far as the benchmark S&P 500 is concerned.
Then I woke up to this Friday morning:
“Stocks set to rise/recover on great jobs report”
OK, cool. Economists’ expectations were for a growth of 200,000 jobs in December, but the U.S. actually added 292,000 jobs. That’s quite performance.
But with the recent market action, I was still skeptical of the market’s ability to feed off of this relatively insignificant news. And I say “relatively insignificant” only because I’m looking at all of this:
- China and global economic worries,
- The free-falling oil prices,
- A disappointingly unchanged average hourly earnings figure,
- And an overall horrible start to 2016 for the stock market.
That’s a lot working against today’s market.
But the futures (pre-market opening trading) showed the market would open up. OK, what next?
A very short-lived climb for the market is now giving way to a retreat that I’m currently monitoring in the middle of Friday. That’s not exactly bullish action.
Al of this just adds to the feeling I’ve been having that this market has run out of steam and is headed for a fall.
Now, that will worry a lot of people out there, but you shouldn’t be. At least, not if you know how to profit while the market is falling. This is something that followers of The Midas Legacy’s sister publication, WallStreetInformer.com, have been getting just recently…
Here it is:
There’s a simple way to bet against something on Wall Street, whether it’s a stock, ETF, or some other security. It’s called, “short selling”.
Short selling, or just shorting, is the act of borrowing shares and selling them, with the agreement that you’ll buy them back later. But you don’t really need to fret over the details.
Shorting is simply the opposite of buying, so you’ll make a profit if the thing you’re shorting goes down in price.
And as the market turns over and starts heading straight down, like a roller coaster finally reaching it’s peak and beginning to gain momentum as it starts it’s rapid decent, the vast majority of stocks will be following suit…
