likebike
Short

8-Year Bear Market Starts Today

AMEX:SPY   SPDR S&P 500 ETF
903 14 8
UPDATE 2015-02-09: This bearish prediction has been invalidated. The S&P500             still seems to have some more up-side potential before the real top. I closed my short positions at a profit, and I am now long the SPX500             .

=== Prediction ===
Bull-Market Top @ 208.88 on 2014-12-08
Bear-Market Bottom @ 106.50 on 2023-02-01
Go Short @ 208.88, Stop Loss @ 227.43, Profit Target @ 106.50 in 8 years.


=== Description ===
I hope you've made lots of money in the bull market that has been raging since March 2009. Anyone who has been using a trend-following "buy-the-dips" trading strategy is now rich, and everyone (even my Dad!) is talking about how great the stock market is. Well, I have some bad news: this party is about to end. As of today, the SPY             will begin a bear market that will last until February 2023, and its price will drop 61.8% to 106.50.

Here is a summary of my thought process (TradingView does not allow me to enter very long descriptions, so I can't go into too much detail. There's a link to my full description at the bottom):

#1 - Perfect Sebelliott "End-of-C" Wave counts on *every* time frame.

#2 - When the market starts to go down, people will worry that the Fed will not be able to maintain its hawkish stance. This causes a positive-feedback selling cycle.

#3 - The Dollar needs to pull back from its recent rally, and since it is currently correlated with the stock market , it will pull the market down too.

#4 - Upcoming bounce in oil             will reduce company profits and push stock market down.

#5 - Everyone is Bullish: When my Dad, Wife, and Drinking Buddies all start talking to me about the stock market , and how it keeps going up, up, up... then I know we're getting close a top. When my Dad wants to invest his entire retirement account into GoPro             ( GPRO             ), I know we're there. :)


Here is a link to my full, detailed description: http://likebike.com/trading/20141208_8_year_bear_market_starts_today.html
Recluse82
2 years ago
who are you? nostradamus?
Reply
JohnKeverich
2 years ago
"Upcoming bounce in oil will reduce company profits and push stock market down" - that sounds a bit counter intuitive. Surely for a stock like HAL, which lost half of its value since July, a bounce in oil will come as a welcome news. And if it doesn't come, then surely the retailers stand to benefit...

The market might be entering a bubble state IMO, but it's not anywhere close to popping yet. There are plenty of large cap stocks, whose valuations actually look cheap (AAPL, GOOGL), and the US economy is growing at the fastest rate in a decade.
+1 Reply
Ruien JohnKeverich
2 years ago
There are certainly some stocks that will benefit from increased oil, but I think it's generally accepted that cheap oil is net positive for the USA. In the early half of 2008 during the big inflation scare, it was very much "oil up, S&P down" and vice-versa. That inverse relationship broke when falling oil prices were seen as a leading indicator of slowing economic growth. Clearly we're in an inverse correlation period right now, so "oil up, S&P down" makes sense. That can and probably will change again someday.

As for valuations - this is true. We just had one of the best earnings quarters in as long as I can remember. On the other hand, the global economy isn't looking all that hot and these large corporations' profits depend very much on that. Using valuations to predict market tops has a pretty dubious history, as you probably know. This isn't my prediction, but I'm interested to see how the convergence of waves portrayed end up playing out over time.
+1 Reply
nightcrawler
2 years ago
I don't believe we have a top yet but why are these people posting 8 or 7 years of continuous declines. Since 1900 (which is as far back I go) there has not been a 8 year continuous decline. Where are you getting these predictions from?
+1 Reply
likebike PRO nightcrawler
2 years ago
Hi nightcrawler. Yes, that's correct -- there is no way there will be a continuous, "straight-line" decline. The decline will, of course, be wavy. But since I have no real way of estimating the waves, I just drew a straight line to the final target point. Sorry for the confusion.
-1 Reply
Lol
Reply
Good joke.
+1 Reply
Exactly today???? Great! OK, but where is the technical sell signal?
Reply
likebike PRO Kumowizard
2 years ago
Kumowizard, I show the exact entry point on the webpage that I linked to in the description. TradingView only used one of my 6 charts in the post above. The webpage shows all 6, including the entry point.
-1 Reply
Kumowizard PRO likebike
2 years ago
ok, I see. I also think pull back is due. But my opinion is that we can not announce the trend is over, until it really is. And that will be when the daily and weekly trend breaks, so when SP500 will print a lower low, and even if pulls back up, won't be able to print a higher high again.
So while I find your "call for a top" very interesting, I think you should call only for a possible interim top, but not yet for a trend recersal. Sorry, but I am simply very sceptic about these kind of long term projections. I am also sepctic when big banks put a 2015 year end bullish tgt for SP500.
I hope you will be right.
Reply
pmks1
2 years ago
hahahahaa ... funny ...
Reply
I see we are on the same curve
Repetitive pattern and a Duck
Santa came early to town but hasn
Hibernation is over for the bears. Safe trading @BLawrenceM
+2 Reply
Algokid PRO
2 years ago
It's a lot of courage to stand in a room full of Bull. I Don't agree with your forecast, but I respect your analysis. Eventually there will be a correction, how a big and how long ? that I don't know. Good Luck , thumb up :)
Reply
WolfCOO
2 years ago
love it. your Dad is actually a great indicator
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out