{"id":151675,"date":"2019-07-17T09:00:21","date_gmt":"2019-07-17T13:00:21","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151675"},"modified":"2019-07-17T06:54:15","modified_gmt":"2019-07-17T10:54:15","slug":"financial-crisis-bear-market-is-scary-close","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/financial-crisis-bear-market-is-scary-close\/","title":{"rendered":"Financial Crisis Bear Market Is Scary Close"},"content":{"rendered":"
July 17, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Everyone knows something bad is brewing not just in the USA but globally within the financial systems. Most countries are bankrupt, and almost all currencies have been losing value for the past year. Everyone is playing the game of musical chairs and getting creative with how they borrow, lend, create, and steal money in hopes the world does not catch on to just how corrupt and bad things really are.<\/p>\n

It\u2019s\u00a0just a matter of time before we see another financial market meltdown and what I show you here today gives you an idea of just how close we could be to a market collapse.<\/p>\n

The financial markets rarely repeat the same type\u00a0of\u00a0crisis, but most crisis\u2019 cause the stock market to sell off and crash\u00a0in the same way.\u00a0Human nature\u00a0and\u00a0emotions do not change, and because traders and investors drive\u00a0the\u00a0price action\u00a0of\u00a0stocks\u00a0we\u00a0are able to profit\u00a0from\u00a0bear markets.<\/p>\n

In fact, bear markets can be life-changing in a good way for those who\u00a0know how to trade\u00a0these market conditions. Because stocks fall 3-7 times faster than they rise, you can generate the same amount of returns someone who invested at the beginning of a\u00a010-year\u00a0bull market and sold at the top, but you can do this in 8-12 months because of how quickly prices fall.<\/p>\n

Three Leading Sectors\u00a0To\u00a0Watch <\/strong>
\nTransports, Industrials, Small-Cap Stocks<\/strong><\/h3>\n

The transportation sector refers to the transportation of goods or customers using major and regional airlines, railroads, shipping firms, ocean freight haulers, trucking, etc\u2026 It is these companies that see a\u00a0slow down\u00a0in the economy before almost everyone else as less shipping is required when sales slow or the economy is tightening using less food, fuel, or buying things in general.<\/p>

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The second sector is industrials. This works much like the transportation sector.<\/p>\n

Last but not least\u00a0is the Russell 2ooo small-cap stock index. These small and volatile stocks are the first to show signs that traders and investors are tightening their risk-reward ratios because they feel the stock market is overpriced and that a bear market could be near, and the last type of stock you want to own during a bear market are small-cap stocks.<\/p>\n

2016 \u2013 2019 Custom Chart of Three Sectors<\/strong>
\nTrans (IYT) + Industrials (XLI) + Russell (IWM) \/ 3<\/strong><\/h3>\n

The chart below shows the recent and current day price action of these three leading sectors. Notice the long\u00a0multi-year\u00a0rally into the high of 2018 followed by the sharp distribution selling that warns the big money players unloaded their positions in these leading and leveraged sectors.<\/p>\n

The 2019\u00a0rally has\u00a0been strong but when you look at the big picture, the price is far from its 2018 highs and the price pattern is bearish\u00a0(it points to lower prices)\u00a0from a technical analysis standpoint.<\/p>\n

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2004 \u2013 2008\u00a0Custom Chart of Three Sectors<\/strong><\/h3>\n

The last bull market looks nearly identical\u00a0in terms of the run-up in price, the top in 2007, and the distribution sell-off in these sectors. The 2008 rally was strong as well, but far from the 2007 highs as well.<\/p>\n

What I want you to notice is the fact that\u00a0these charts\u00a0have moved nearly the same. Just like I mentioned earlier how bear markets price patterns repeat, so do bull market price patterns. The 2009 price action and 2019 price action are nearly identical and when you see the next chart you will see why the financial market is scary close to the next crisis\/bear market.<\/p>\n

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2009 Market Crash Custom Chart<\/strong>
\nTrans (IYT) + Industrials (XLI) + Russell (IWM) \/ 3<\/strong><\/h3>\n

Bases on the 2008 weekly chart below the US stock market could be literally 2-6 weeks away from collapsing. What makes this even scarier is that the market\u00a0liquidity\u00a0is the worst\u00a0its\u00a0been in my\u00a023 years of trading meaning when the selling\u00a0starts\u00a0we will likely see some sort of flash crash as we saw in 2008, 2015, and 2018. Price drops so quickly by the time you figure out what you want to do and get your money properly positioned most of the move is already completed.<\/p>\n

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Eye Opening Gold Miners Charts and Analysis from 2008-09<\/strong><\/h3>\n

There are several other\u00a0really intriguing\u00a0things happening that further confirm this analysis like how gold miners are outperforming US stocks, the gold : silver ratio above 85, the presidential cycle, the decade cycle and many more. It was actually all these other things that made me review these leading sectors here today. I\u2019ll touch on these other topics in the next few articles later this week<\/p>\n

The chart below shows you what the stock market and gold miners did just before the bull market topped and what they did after. Be aware, if you\u2019re a gold bug you may not like this chart but you can\u2019t\u00a0argue\u00a0with the truth of what miners did during the bear market and other bear markets for that matter.<\/p>\n

See my updated chart showing where gold miners and the stock market is as of today within this cycle<\/em><\/strong>:\u00a0 <\/em>https:\/\/www.thetechnicaltraders.com\/next-bull-and-bear-markets-are-now-set-up\/<\/em><\/strong><\/a>\u00a0<\/em><\/strong><\/p>\n

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Concluding Thoughts:<\/strong><\/h3>\n

In short, the bear market has been a long time coming, but finally, almost all the signs are showing that\u00a0it\u2019s\u00a0about to start. As a technical analyst since 1997 having lost a fortune and making a fortune from bull and bear markets I have a good understanding of how to best attack the market during its various stages. Stay Tuned for Part II\u00a0<\/em><\/p>\n

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with\u00a0our\u00a0\u00a0Wealth Building & Global Financial Reset Newsletter<\/strong>.\u00a0 You won\u2019t want to miss this big move, folks.\u00a0 As you can see from our research, everything has been setting up for this move for many months \u2013 most traders\/investors have simply not been looking for it.<\/strong><\/p>\n

Join me with a 1 or 2-year subscription to lock in the lowest rate possible and ride my coattails as I navigate\u00a0these financial market\u00a0and build wealth while others lose nearly everything they own during the next financial crisis. Join Now and Get a 1oz Silver Round or Gold Bar Shipped\u00a0To\u00a0You Free.<\/p>\n

I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these\u00a0supercycles\u00a0are going to last years. A gentleman by the name of Brad Matheny goes into\u00a0great detail\u00a0with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener.\u00a02020 Cycles \u2013 The Greatest Opportunity Of Your Lifetime<\/strong><\/a><\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

I\u2019M GIVING AWAY \u2013 FREE GOLD & SILVER WITH MEMBERSHIPS<\/strong><\/p>\n

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So\u00a0kill two birds with one stone and subscribe for two years to get your<\/strong>
\nFREE PRECIOUS METAL and get enough trades to profit through the<\/strong>
\nnext metals<\/strong>\u00a0bull market and financial crisis!<\/strong><\/p>\n

Chris Vermeulen \u2013\u00a0 TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Everyone knows something bad is brewing not just in the USA but globally within the financial systems. Most countries are bankrupt, and almost all currencies have been losing value for the past year. Everyone is playing the game of musical chairs and getting creative with how they borrow, lend, create, and steal money […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151675","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151675"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151675\/revisions"}],"predecessor-version":[{"id":151676,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151675\/revisions\/151676"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}