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SHOCKING STOCK MARKET SECRET REVEALED: Are You Ready for the CRASH?
Buckle Up, Investors! The Stock Market is About to TAKE A PLUNGE!
A couple of years ago, I stumbled upon a jaw-dropping revelation about stock market seasonality! Get this: Bull markets and bear markets don’t just act differently—they play by a whole different set of rules!
Let’s keep it real. Once I pieced it all together, it felt so obvious, like missing the big red flag! Sometimes, you just have to flip the script to see the truth staring you in the face.
Bear Markets Take Center Stage! “SELL IN MAY” Is BACK!
Here’s the tea: During those gloomy down markets, the infamous “Sell in May” mantra packs a punch like never before! But when the bulls are out? Forget it! That old rule barely makes a ripple!
So, where’s the market standing today?
HOLD ONTO YOUR STOCKS! IT’S TIME TO FACE THE MUSIC!
I dug deep with a couple of methods to nail down what defines a bull or a bear phase. The results were mind-blowing! One method? Simply checking if the market closed the year in the GREEN or the RED! The other? Keeping an eye on the 200-day moving average—because who doesn’t want instant clarity?
Right now, folks, the market is sitting RIGHT BELOW its 200-day moving average… which screams BEAR MARKET! Yes, you heard it right! And you know what that means? We’re gearing up for some intense seasonality shifts!
Here’s the kicker: This current stock market bounce is occurring during a traditionally STRONG season for DOWN MARKETS! April and early May might deliver a false sense of hope before the downward spiral kicks in!
DON’T BE FOOLED: The REBOUND is FADING FAST!
If we take these facts at face value, it sounds like this rally is gearing up to run out of steam in the coming days or weeks. And guess what? A return to the dreaded downtrend could be just around the corner!
But wait! Seasonality is JUST ONE PUZZLE PIECE. It’s not the whole picture! It merely describes patterns from the past—sure, exceptions exist, but let’s not pretend like we’re not in for a wild ride!
So how do I play this? I treat seasonality as a little extra spice! I dig into the fundamentals, shape my outlook, and then see if seasonality backs me up. If it does? BAM! Confidence levels go through the ROOF!
Or, you could start with seasonality as your gut feeling. Think something’s brewing? Dive into research to find the fundamental reasons behind your instinct!
In my latest Weekly ChartStorm, I presented a compelling case for CAUTION. The technical and macro fundamentals scream that we should be wary, and the chart backs that up!
KEY TAKEAWAY: GET READY FOR MORE DOWNSIDE!
Here’s the original chart from my market seasonality study, freshly updated! Feast your eyes on the market curves! The bull market curve looks mildly appealing, but the bear market curve? UGLY!
STRAP IN, INVESTORS—THE THRILL RIDE IS JUST BEGINNING!
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