Skip to comments.The Next Two To Three Days Are 'Extremely Critical' For The Stock Market — It May Crash 40%
Posted on 02/05/2014 9:40:05 AM PST by blam
TOM DEMARK: The Next Two To Three Days Are 'Extremely Critical' For The Stock Market It May Crash 40%
Feb. 5, 2014, 11:20 AM
Noted market-timer Tom DeMark did not sound optimistic about the prospects for stocks in an interview with CNBC this morning.
DeMark compared today's market to that preceding the Black Friday crash in 1929.
"When the market made its high on September 3, , there were 23 subsequent trading days where the Dow Jones Industrial Average had a short-term bottom," he said.
"23 days aligns with the low end on Monday. And subsequent to that, we had a four-day rally, and then the market unraveled went down 48%. We are currently at that inflection point. Like I said, so far, everything is aligned. We think the next two to three days are extremely critical."
DeMark explained why:
We get into the minutia as well as the long-term, and what it looks like to us if we were to, yeah, just for as an example if today were to be an up close, versus the prior day's close, and then tomorrow, we close down, and we follow with a lower opening the next day, and trade a little weaker, we're probably going to unravel quickly.
(Excerpt) Read more at businessinsider.com ...
[Runs around with hair on fire]
The Wall St. cheerleaders at CNBC are desperately trying to bail water from the sinking stock market. Only “buy-buy-buy” messages are welcome on air. By the way, this mindset is exactly why no one uttered a peep in 2008 before the crash.
Whaaduhyuhthink? We see this headline once a week, or once a month until Obama has finally killed of THE AMERICAN DREAM?
I sold on the first “up” day after the first “big” drop day.
BTFD or BTFATH Bitchez!!!! MOAR!!!! You can't lose!!!
They have had what, six major financial bankers commit suicide in the last week.
Yeah, I can believe it.
So stocks now paying 4.2% will be paying 7%?
I don’t think so. The thirst for yield and the need for income will prop up the market. Where are you going to go? Will you take a 2-year CD that pays .9%?
Are you referring to the dividends?
Sadly, it frequently happens that, when a stock tanks, the company's board then also pours salt in the wound by reducing the dividend, as well (which, of course, can result in a positive feedback loop, as the stock price then declines further).
I just sold because I know this market is going to crash sometime, and it looked like it was hinting at it last week.
There was no "Black Friday" crash in 1929. The two sharp downturns in late October were dubbed Black Thursday and Black Tuesday, and the market bottomed out on Black Wednesday, November 13. But on the day after Thanksgiving, which we call Black Friday today, the market had begun to rally and was on its way back up.
Sold what? All five shares of BofA? Or all 50,000 shares of GOOGLE?
I said "Just kidding".
That means, it was a joke. I'll let you figure it out from there.
Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!
I heard it was dozens! /s
-- Robert Louis Stevenson