…Today, investors have become way too complacent as the broader markets trade near their highs. However, as the markets really start to fall, complacency will eventually turn to panic. According to my analysis, the next critical level for the Dow Jones Index is 19,000.
The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com – A Site For Sore Eyes & Inquisitive Minds – to provide a fast & easy read.
I picked the 50-month moving average (MMA), shown in the blue line as the first critical level.
Once the Dow Jones Index falls below 19,000, the next critical level will be 13,000, or the 200 MMA (in red). These levels aren’t “possibilities,” but rather, “guarantees” to occur over the next few years. Why do I say a guarantee? Well, if we look at some of the insane stock price charts [on Netflix, Ripple, Amazon and Facebook as illustrated in my original article], you would have to be a complete imbècil to arrive at a different conclusion…
However, if you can see just how highly overvalued the stocks mentioned above are, then it might be prudent to invest in something that is trading closer to its lows. The silver price is currently trading at its 200 MA and below its 50 MMA:
Investors need to start thinking about PROTECTING WEALTH rather than BUILDING WEALTH. The next few years are going to be tumultuous, so the best strategy is to keep what you have [rather] than losing a lot in the markets but, of course, 99% of investors will not protect their wealth during the coming downturn…
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If wealth preservation investors get out of their stocks and buy silver, they are likely to avoid the most massive wealth destruction in the next few years. Let me explain.
The gold/silver ratio (the price of gold divided by the price of silver) has touched 80 a few times over the past 25 years but the number of days one has been able to buy silver while the ratio is above 80 has been few and this is calendar days, not trading days. This is highly actionable information.
Silver in early 2018 is inexpensive compared to M3, National Debt, government expenditures, the Dow and gold.
When you look at the silver price, relative to US currency (the amount of actual US dollars) in existence, then it is at its all-time 100-year low making it the bargain of the century. Let me explain.
The fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.
The next rally in silver should be huge based on the prospects for expanded war, financial chaos, and central bank “printing” that will devalue all currencies. Silver will sell for $100 per ounce!
Silver prices have risen exponentially for the past 90 years as the dollar has been consistently devalued. Expect continued silver price rises.
I am convinced that silver will soon explode in price in a manner of unprecedented proportions, both in terms of previous silver rallies and relative to all other commodities. By unprecedented, I mean that the price of silver will move suddenly and shockingly higher in a manner never witnessed previously, including the great price run ups in 1980 and 2011. The highest prior price level of $50 will quickly be exceeded.
50 ways to diversify your silver holdings. Now you can make sure you have the right form of silver, for the right purpose, for the right time, for a diversified hard-asset portfolio.
It’s Economics 101. Price works to balance supply and demand. Limited supply causes higher prices; higher prices help curb demand…[and] that equation is playing out right now in the silver market. Mined silver supplies have been drying up over the past few years, while silver prices have climbed 20% in the same time frame…
Silver has often rebounded nearly 100% within 12-15 months after bad and long bear markets. History says Silver is ripe for a similar move over the next 12 to 18 months.
Silver is now rarer than gold and will be for all of eternity. From this point forth we work from current silver production alone and, from this point forth, demand will outstrip production without exception. Can you imagine what that means for the future price of this, indeed, precious metal? Forget about the popular expression: ‘Got gold?’ The much more important – and potentially more profitable – question to ask these days is, ‘Got silver?
The long-term trend in the S&P 500 is up and nothing over the past 6-weeks has changed that trend!
There is an extreme amount of leverage in the markets and, while this leverage may increase for a while, at some point the insanity will end in one heck of a market correction-crash.
Is the bull market about to come to an end? If last year ends up being the top of this bull market, what does history say could happen to stocks this year?
Comparing the Trump and Kennedy rallies—as in the first chart below—I expect Trump’s market to build an even bigger slide.
As the next crisis erupts, the mainstream media is going to respond with shock and horror but the only real surprise is that this ridiculous bubble lasted for as long as it did. The truth is that a market decline is way overdue.
Mark my words here: This third and final bubble (fourth if you count 1987) is now the biggest and most obvious bubble in this boom since 1983. It is as overvalued as at the top of 1929 and the fact that no one wants to hear about it is an ominous sign that it may well be peaking!
Treasury Secretary, ex-Goldman Sachs banker Steven Mnuchin, has threatened Congress with [a] stock crash if Congress doesn’t pass a tax reform Bill. His reason is that the stock market surge since the election was based on the hopes of a big tax cut. This reminds me of 2008.
There’s no real reason to suspect from a fundamental standpoint that the bull market in the stock market has ended. Indeed, the balance of the data suggests we aren’t likely to see a recession in the U.S. until late 2018 at the earliest. Let me explain further.
As it stands, everything is in place for a serious stock market correction; the question is when. With markets in record territory and momentum strong, the next crash may not be around the corner but, with valuations getting further and further out of whack, stocks will have further to fall when a crash comes.
This article describes what led up to the stock market crash of 1929 and the ensuing Great Depression.
One of the world’s most powerful supercomputers, retrofitted for trading the stock market, appears to be betting on a crash in the months ahead.
Momentum is one of the most misunderstood concepts in the investment world but few people grasp how much it impacts the markets – in both directions.