What Happens When This Bull Market Ends?

We are humans.

We perceive the world around us.

We respond and react to stimuli from our environment more readily than we can consciously communicate.

Our subconscious reactions can be predictable. Even bordering on habitual.

Thank goodness.

Because it means I am smarter than I let on, right?!

Maybe not. But I am pretty good at predicting the decisions made by investors reacting to, well, decisions made by other investors.

And I have a big-time prediction for you today …

A Major Turning Point is in Store

I make predictions by analyzing price patterns. Those are simply the market’s manifestation of human decision-making.

I mostly focus in on two- to four-month time frames. But human nature drives price patterns in all time frames.

These patterns are made up of waves, similar to the cycles Larry Edelson studied to help him identify and predict major market trends. Larry’s cycle work underpins how my colleague Sean Brodrick leads investors to profits from major market narratives.

The series of waves I’m looking at right now suggests a major turning point is in store. What you do to prepare is up to you …

What Happens When this Bull Market Ends?

Despite stretched valuations, geopolitical fireworks, political tremors, stagnant economic proposals and the end of extraordinary monetary policy, the U.S. stock market continues to go up.

That’s a chart of S&P 500 futures. And that’s the pattern I’ve been monitoring.

Ten months ago, as stocks were flirting with all-time highs, I went on record saying,

“The S&P could gain as much as 17% from current levels in the next 12+ months.”

The S&P has since rallied 16%.

If you missed that rally, you may get another chance: Stocks are poised for a more-than-20% decline.

How do I know? I don’t.

But the current bull market resembles an intermediate-term bull market in the Dow Industrials that began in the 1940s. I’ve circled where I think we might be today …

When the interim cycle ended, it produced a 34% market correction that eventually served up an epic buying opportunity. The next leg of the supercycle bull run sent the Dow 1,765% higher from there.

A comparable correction and rally today would send the market down roughly 23% before going — well — a lot higher!

Where it stops, nobody knows …

If this correction and rally look anything like the ghost of prices past, investor panic will be met with false hope. The market will rinse-and-repeat, and fool as many investors as possible. That is, until economics, sentiment and capital flows join together to fuel a new wave in the supercycle.

Economic policy including tax reform, financial deregulation and infrastructure spending could drive market narratives. Relative changes between global monetary policies could, too.

And those are just the more-predictable items.

What to Do TODAY

Based on my wave analysis and timing indicators, I think you should be very selective in what you buy and how much risk you take in the next two months.

Especially since a much-better buying opportunity is on the horizon.

Unfortunately, most investors don’t know how to discern price signals. Many will lose a lot of money in the months ahead because they have no assurance in what they cannot yet see.

That’s too bad.

But there’s good news for you: Sean has been working closely with Martin Weiss to lay out all kinds of scenarios you should know about … so you can protect and profit from the predictable ups and downs of market cycles.

If you want the full scoop on what they’re saying about what’s ahead, and what Sean suggests you do about it, check out the marathon Q&A session Martin and Sean held on Wednesday. Click here to watch it now while it’s still hot off the press.

Do right,
JR Crooks

 

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Comments 4

  1. H. Craig Bradley October 6, 2017

    INVESTING OR GAMBLING IN LATE STATE BULL MARKET AND RECOVERY

    If so, the Current Wave V is very long and extended compared to many in the past. So, can you really forecast what the market will do or where it will go, at all ? Kinda doubt it, especially in the intermediate term. Nobody really knows for sure until AFTER the market makes its move. Its always a surprise too for most all investors. Never quite ready for it when a bear market happens. Human nature and history are repetitive.

    Reply

  2. will Oakley October 11, 2017

    Looking at your 2002 chart, the bottom was not reached until 10 years after crest 4, ouch.

    Reply

  3. MAHENDRA October 14, 2017

    I MAHENDRA. I .AMIN NEED A HARD TRANSCRIPT DUE TO IMPAIRED HEARING (DUE TO RECENT SURGERY) TO UNDERSTAND THREE VIDEOS OF OCTOBER ENDED ON LAST WEDNESDAY, TO UNDERSTAND AND MAKE A DECISION.

    THANKS
    SINCERELY
    MAHENDRA. I. AMIN

    Reply

  4. MAHENDRA October 14, 2017

    I AM WAITING FOR THE TRANSCRIPTS TO MAKE A COMMENT.

    Reply