The charts are foretelling a very big problem, and in looking at it I can even gleam some timing from it by just following the indicators down on their angle of decent. Lets take a look at whats coming by looking at the QQQ weekly chart as it looks today:
You can see a few things here and nothing is good.First of all, look at the indicator on the top, or the RSI and then look at the indicator on the bottom, or the MACD. I haven't seen anything like this since 1999 before the 2000-1 crash. Both indicators are completely deflating and coming all the way down the chart on an angle of decent, while the candle sticks themselves are climbing. This is called 'Divergence'. What almost always happens is that the candlestick charts will turn and start to go the same direction that the indicators are going. And in this case it looks like the indicators are slowly heading for the ground. By looking at how long they have been dropping and forecasting foward, i expect a BIG BIG crash to happen around next March-May. Not fun to talk about but you have the privilege to read about it and know about it before it happens. Think of me as a crystal ball/chart scrying trader that is going to save you a total ass-beating. A few things to keep in mind:
1. Dont have your eggs all in one basket. Work at CDW? Work at Microsoft? Its one thing to have company stock as rewarded to you by your company. Its another thing to sink extra money into your company stock thinking that it will pay off. Think Enron or WorldCom or any big bluechip in the years 2000-2003. Spread out your money.
2. Start getting out of stocks. Things will peak before they turn and hit the floor, I just don't know when yet, I just have a general idea. Maybe diversify your portfolio and get into some safe municipal funds. Perhaps precious metals. Gold will jump in a crash. Make sure you have physical possession of it just in case the crash is VERY bad. Records could get scrambled.
3. Transfer your cash to some safe and secure FIRST WORLD banking institutions such as Germany or Switzerland
4. This by fall 2016 there will be blood in the streets. People will be moaning, houses and businesses will be lost, banks will fail, there will be carnage. THIS IS THE BEST TIME TO START BUYING STOCKS WHILE THEY ARE FLATTENED IN PRICE. When the market bounces back and the stock prices bounce back you will make a fortune. Remember the beginning of the movie "TimeCop" when the crook went back from 2009 to 1929 during the crash and starting buying stock for pennies on the current dollar? You dont need a time machine for that, you just have to be waiting with cash out of the market for a stock market crash. Then you move in.
A few things to think about. Stay Frosty with your finger on the trigger. Bad things afoot.
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