Major Stock Market Crash In January

Doom Porn Alert!

Sorry, no asteroid strikes or zombie apocalypse here. How about a good old stock market collapse? Anyone who's been following the QE inducing Wall Street bubble may find the following interesting. Who knows maybe in a couple months we'll be seeing all those Wall Street sharks doing swan dives out the 10th story windows.

Major Stock Market Crash In January

check out this stunning analogy between the current day Dow Jones Industrial Index compared with the time period 1928-1929 leading up to the memorable stock market crash…

The pattern of stock price movements looks VERY close to the lead-up to the 1929 top.

A lead-up to just any old top is one thing, but the 1929 top was followed by a memorable decline, which makes it all the more worthy of our attention…

One very interesting implication of this chart pattern analog is that it says that the equivalent of the Sep. 3, 1929 top is ideally due Jan. 14, 2014.

Personally I believe we are in for a correction. That said, with the Fed printing $85 billion per month I'm unsure how that will happen. With the incoming new Fed boss saying she likes QE looks like the monopoly money will keep coming. But I found the chart interesting.

It's only a matter of time. Even some economists are saying a major correction is in the making. I can't pin it down to a specific time, only those who control the market can do that.

Look at the bond market.

When interest rates start climbing, jump on the bond market and get out of the stock market.

My 2 cents.

reply to post by beezzer


I used to know a girl who liked bondage

rickymouse
reply to post by beezzer

 

I used to know a girl who liked bondage

Was it Bondage?

James Bondage?

reply to post by rickymouse


reply to post by beezzer


Slow night huh guys?

Basically if you're in stocks then you're probably in bond(age)

reply to post by beezzer


She tried to rope me into going out with her full time.

As a firm believer in trend analysis, I must say I am impressed with the chart in your OP.

I remember my economics professor explaining that the rich aren't rich while the value of stocks are rising ... they're truly rich after a crash. I wish I had the retention to explain the whole theory, but it sure made sense the way it was explained.

If there's a correction, let's hope it's an applied value or currency standard change. The way economic policy has been handled during the last two presidencies ... SMH. If our economy collapses we're taking most of the world along for the ride.

reply to post by Snarl

If our economy collapses we're taking most of the world along for the ride.

I believe you're right. If we kick off the collapse of the derivative markets the entire planet is going to be hosed. Just a matter of time now. Look at the market wobble when the Fed merely hinted at tapering.

We would never see another Great Depression due to Monopoly money and bail outs. So what difference does it make anymore. The risk is always there but it wouldn't be as dire as back then - lessons were learned. Interesting how it looks like that period of time though.

What do you guys mean when you say "correction?" switching currencies?

Tucket
What do you guys mean when you say "correction?" switching currencies?

Sorry ... my bad. I used the term out of context within Bassago's thread.

A correction in this thread should be construed as a decline in trade or value. I went with the more literal ... which isn't really a correction at all. I get carried away in doom porn threads. -grin-

reply to post by Tucket

What do you guys mean when you say "correction?" switching currencies?

Stock prices historically are based on intrinsic value, how much revenue, profits, etc a company provides. With the Fed's QE money pump going full throttle stocks are no longer pegged to those things and have risen into the stratosphere.

It's a matter of time until someone decides that Wiget inc. is only worth what they are worth and starts a stampede for the exit. Then stocks become revalued at a realistic price. Especially possible if the Fed stops pumping and we see a price deflation (more likely just a crash.) Lots of causes for that to happen.

Currency change? Probably not.

reply to post by Tucket


its when The Fed says oopsy-daisy and we all get screwed lol

reply to post by Bassago


Ok thanks. I'm just wondering what the outcome of a major crash would be. How would we rebound..

reply to post by Dianec

We would never see another Great Depression due to Monopoly money and bail outs. So what difference does it make anymore. The risk is always there but it wouldn't be as dire as back then - lessons were learned. Interesting how it looks like that period of time though.

Not sure that I believe that. If a stock market crash happens and causes a cascade collapse of the derivative markets nothing will prevent a world wide depression. As it stands the derivatives are now larger than the GDP for the entire planet, about $1.2 quadrillion. A quadrillion is a big number: 1,000 times a trillion..

rickymouse
reply to post by beezzer

 

I used to know a girl who liked bondage

Is that poo on your avatar?
Firepiston

reply to post by Bassago


What's happening sounds a lot like what happened in "Atlas Shrugged".

I can't say that I'm a fan of Ayn Rands philosophies, but that book is turning out to be prophetic, right along with "1984".

reply to post by Bassago


Your're much more of an expert than I am so I read your threads and try to learn from them. I just had a college math professor tell us this. That was in the 90's though so may be outdated by now. He also said it would never look like the Great Depression - people so desperate they were jumping out of windows or living off of crumbs after having lived pretty comfortably. We have social programs in the US and the government would bail people out in other ways. We might see some pain but nothing like they did then. I hope this still applies but a lot has changed.

Dianec
We would never see another Great Depression due to Monopoly money and bail outs. So what difference does it make anymore. The risk is always there but it wouldn't be as dire as back then - lessons were learned. Interesting how it looks like that period of time though.

You are wrong on a many levels...........We currently have a currency bubble and when this one goes it will make the great depression look like the roaring twenties.



You mention that we learned our lessons.........I am not sure what to say to that other then you are wrong. We will see hyper inflation in 2014 some time I believe and when it comes it will be epic.



I can actually prove what I am saying look at all the lower paid workers they are screwed. They can not afford to live anymore.