6 Reasons Stocks Are Headed for a Plunge
Another week, the same story.
The Dow Jones Industrial Average dropped more than 5% in trading on Monday and Tuesday. Then on Wednesday the index jumped 2%. On Thursday it zigzagged in and out of the red.
There’s no way to sugarcoat this. Investors are nervous.
Right now, the 50-day moving average is an impenetrable wall … and stock prices just ran right into it. Eventually, they will break above that line. But first, there will likely be another steep decline.
When that happens, you don’t want to be caught like a deer in the headlights. So you’ll need to know what to watch out for.
Flashing Red Flags
I pulled apart all kinds of data. It leads to one conclusion. In today’s video, you’ll see those charts for yourself. You don’t need a degree in economics or need to be a financial expert to understand what they mean.
This week you’ll also discover:
- What sets this rally apart from the bull market turn off the 2018 lows … and what that says about where stocks are headed next. (1:27-3:18)
- The key metric that is going down even while stock prices are going up. On the surface, it doesn’t make much sense … but it’s critical to understand. (5:05-6:06)
- The one chart you need to see that proves my double bottom argument. (7:13-8:25)
Bottom line: The market is flashing several red flags.
Editor, The Bauman Letter
An economist by training, I grew up in the U.S. but emigrated to South Africa in the mid-1980s where I became deeply involved in the development and implementation of post-apartheid economic and urbanization policy. During the 90s and 2000s, I was a consultant to a variety of entities, including African and European governments and the United Nations.