Many people are getting crushed in the stock market.
It isn’t just small traders getting hurt, but professionals too. In fact someone sent me a video of a hedge fund manager crying after wiping his clients out. You can watch it here:
The bulls becoming bagholders for dumping insiders should get some relief now as the stock market SHOULD bounce today and on Friday.
Now I normally don’t like gap ups and people don’t like it when I send out an email before a market open saying don’t believe in a gap up.
That happened on the day after the mid-term election. The market gapped up – I sent an email out saying don’t believe it – and that drove a few people into a rage. Of course the market simply topped on the close and turned down for disaster drops in the popular tech stocks, but the masses are still bullish and most experts are still predicting a massive end of the year rally just as they were claiming their would be a mid-term election one.
Now I don’t think a move up here will amount to anything if it can happen.
I explained why I think the stock market overall trend is now DOWN in a comprehensive video yesterday.
If you haven’t watched it yet then you need to see it in order to understand what it is I am looking at and why I am saying the stock market is now in an overall downtrend drop that won’t end this year:
However, the market SHOULD go up now for three reasons.
1)It’s Thanksgiving tomorrow and it almost always goes up today and Friday. These are actually the two days out of the year that historically the market is most likely to go up.
2)The stock market is oversold after the recent drops of the past two days.
3)Many of the key big cap tech stocks that have collapsed in recent weeks put on reversals yesterday.
For instance look at FB.
FB had a potential reversal day yesterday.
The chart is a disaster so any rally would have stiff resistance above it and only be temporary.
And NVDA also did the same yesterday too.
NVDA had a reversal yesterday, but is in such a steep decline that it looks like it’s just going to repeat what it did on its last bounce and go sideways a few weeks and fall again.
That is the real story with Facebook and the other stocks that had reversals to the upside yesterday.
They just look like they will bounce or go sideways for 2-3 weeks and fall again.
And that is the story of any stock market bounce we happen to see from here – it will happen on thin volume and just represent a pause within a powerful downtrend that will end sometime next year with a panic selling capitulation.
If the recent drops don’t scare people what will it take to make them give up?
The crazy thing is that there are actually some things acting better than the market that should go up next year regardless of what the stock market does, but the masses are so complacent they don’t want to even sell turds like Apple and Facebook and get into things doing well.
That is how complacent people are!
Right before Labor Day, I opened up an account with Robinhood to provide people with real live trading. That account is up while the market has been falling.
I’m running a special to get you into my trading service for only $7.97. It ends on Cyber Monday so grab it early by going here: