No bear market: another confirmation.

During the last two bear markets once price fell below the 12 month moving average it never recovered until the bear was over. As you can see in the chart bellow, price has already recovered the long term average. All of the monthly indicators are turning back up. This was never going to be an extended bear market like so many analysts have been trying to call. It’s simply too late in the 7 year cycle for that. Stocks: this is no bear market.

You’ve watched for the last year as I’ve guided traders through the markets spotting the major turns correctly over and over as virtually every other analyst has consistently gotten it wrong, or missed the moves because they were too timid to make a directional call. Let’s face it, by the time one gets confirmation of a move it’s about time for the move to reverse. So all you accomplish by waiting for these analysts to give you the OK is to get caught at the top of the rally, or the bottom of the sell off.

This is not how I trade. I try to call the bottoms in real time so that traders can get on board early and actually make some money off the rally instead of sitting on the sidelines and watch it pass you by. You’ve seen over and over that the technical analysts have never caught one of these major turning points. Why? Because charts are a record of what’s happened in the past. They can’t tell you when the trend is about to change. At bottoms the charts will always say that the trend is down, and at tops the charts will always say that the trend is up.

You need different tools to time these big turning points. You need cycles & sentiment. Technical analysis alone is never going to produce what you are looking for. If you don’t find a way to trade opposite your emotions, and your charts you will never master the the art of buying low and selling high.

I’ve been correct on my intermediate calls and macro calls over and over, and I can say with a great deal of confidence that I’m going to be correct again on my stock market call and especially on the biotech call. You’ve got to quit listening to the perma bears and the trolls. they are never going to make you any money. Let’s face it, the world can only end once. What’s the point of betting on it? On the other hand we have 5,000 years of history proving that mankind always finds a way to overcome its problems. I’m going to guarantee we will this time as well.