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Strategies & Market Trends : Zman Market Timing -- Ignore unavailable to you. Want to Upgrade?


To: The Ox who wrote (6644)1/19/2016 7:11:06 PM
From: Return to Sender  Respond to of 15903
 
Those are some great reasons for a short term bottom. Heck they are even great reasons for a long term bottom but we have not seen anywhere near the pain that is usually associated with a long term market bottom.

Ox, we have been having this discussion for years.

I know you thought that oil was going to bottom sooner. That the continued fall in commodity prices was unrelated to actual economic downturns that are not yet done worldwide.

There has been a huge disconnect between the US stock market and what has been going on not just worldwide but it our own country as well.

I hope everyone will look hard at these charts. Skip down to chart #5 where you will find just how much the FED was able to create a bubble in our stock market even as worldwide growth has been floundering.

yardeni.com

The FED is no longer spiking the punch bowl. Yes, we should get a short term rally anytime now (Your reasons are as good as any) but until we have real economic growth happening with normalized interest rates our stock market is at huge risk of further declines.

Interest rates cannot be held this low forever. The government cannot continue to expand our deficit forever.

We need real incentives to put Americans back to work at full time jobs. We need good reasons for our youth to want to become better educated and gainfully employed.

Bottom line despite your good reasons for the market to form a last major market bottom it is not going to happen until you see a 90% upside day, or 2 80% upside days, in close succession. Until that happens sell the bear market rallies because bear markets last many, many months.

RtS