HSBC’s technical-analysis team has thrown up the ultimate warning signal.
In a note to clients released Wednesday, Murray Gunn, the head of technical analysis for HSBC, said he had become on “RED ALERT” for an imminent sell-off in stocks given the price action over the past few weeks.
Gunn uses a type of technical analysis called the Elliott Wave Prinicple, which tracks alternating patterns in the stock market to discern investors’ behavior and possible next moves.
In late September, Gunn said the stock market’s moves looked eerily similar to those just before the 1987 stock market crash. Citi’s Tom Fitzpatrick also highlighted the market’s similarities to the 1987 crash just a few days ago. On September 30, Gunn said stocks were under an “orange alert,” as they looked to him as if they had topped out.
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Time For Truth: (Business Insider) – HSBC: RED ALERT — get ready for a ‘severe fall’ in the stock market
Swiss investor Marc Faber is known for his pessimistic view of stock markets, and says the S&P 500 index could soon lose more than half of its value.
A rally since late June has the S&P 500 up nearly seven percent in 2016, setting new record-highs almost every day. Faber predicts the index could first grow to 2,300 points from the current 2,182 before the nosedive.
It is hardly a secret that few things could help Trump’s presidential campaign as much as a stock market crash.
As we reported back in January, while Wall Street typically worries about how politics might affect the market, Presidential candidates worry about how the stock market might affect their political outcomes. The reason for this is that historically, the market performance in the three months leading up to a Presidential Election has displayed an uncanny ability to forecast who will win the White House… the incumbent party or the challenger. Since 1928, there have been 22 Presidential Elections. In 14 of them, the S&P 500 climbed during the three months preceding election day. The incumbent President or party won in 12 of those 14 instances. However, in 7 of the 8 elections where the S&P 500 fell over that three month period, the incumbent party lost.
Earlier this week, as the financial world was mesmerized by a min-stock market crash, the Financial Times published a dastardly little piece of fascist propaganda.
There is no more egregious anti-liberty economic policy imaginable than banning cash. I covered this earlier in the year in the post, Martin Armstrong Reports on a Secret Meeting in London to Ban Cash. Here’s an excerpt: