Stock Market Crash Nightmare! :: The Market Oracle :: Financial …

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Stock Market Crash Nightmare!

Financial CrashJul 21, 2014 – 03:03 PM GMT

My yesterdays article painted a picture of a stock market that has failed to correct the consequences of which were for sowing the seeds for a more violent future correction that could even risk triggering an end to the 5.5 year stocks bull market that began in March 2009 –

20 Jul 2014 – Stock Market in DANGER of Strangling the Bears to Death

STOCK MARKET BLOW OFF DANGER

Whilst I DO NOT consider the stocks bull market to be over. However for me the most dangerous thing the stock market can do now would be to start rallying strongly and thus risk entering the BLOW OFF PHASE when investors lose all sense of of reality and send stock prices soaring by 20-30% into the stratosphere that probably COULD terminate this 5+ year stocks bull market.

What I Am Doing

I have to recognise the increasing risks and will be further reducing by exposure to the stock market by 1/3rd to approx 15% of assets in favour of UK housing.

Stock Market Crash Nightmare

The last time I was finding myself having sleepless nights in respect of my exposure to the stock market was a couple of years ago when I had about 40% of my assets invested in the stock market which I subsequently reduced to about 18% over the following 6 months as I cycled out of stocks, cash and bonds and into UK housing. Today I find myself literally walking up to a stock market crash nightmare, where on waking my immediate awareness was that the Dow HAD started to crash by having closed its first waterfall day down by some 3,000 points to stand at just above 14,000, from its previous close of 17,100, which just so happens to be where the Dow closed last Friday!

From what I can recall the timing was summer, and the price matched the present! so appeared imminent and the day was apparently Thursday. Yes it was just a dream, well a nightmare and whilst yesterday I had already indicated that I was seeking to cut my stock market exposure by approx 1/3rd to around 15% due to the dangers of failing to correct, now I am seeking to hasten the process of significantly lightening my portfolio to BELOW 15% of assets.

This further illustrates the point of why what you hear and watch on the broadcast news by journalists and salesmen is worthless rear view mirror looking BS because they do NOT LIVE and BREATH the MARKETS! So never commit what needs to be committed to be in SYNCH with the market which is why most miss the WHOLE Bull and Bear markets. And if nothing else I get to find out if dreams / nightmares are worth paying any attention to or not.

The bottom line is that when the end does come, I don’t want to be sat holding a mountain of fast depreciating stock certificates! Instead I want to be ready and able to BUY! And if I am lucky I may even be able to ride most of the crash down as I have a number times before (1987 Stock Market Crash – How a Newbie Beat the Great Crash!), though I do consider trading the right side of a crash being at least 50% luck because a stock market crash CANNOT be Forecast because it is a PANIC event. Still my trading eye is now more focused towards the potential of trading another crash, and once more chuckling at the parallysis that tends to grip the mainstream financial press durign such events with gaping open mouths, desperatly clutching at straws to explain what is beyond their level of market awareness.

Your sweet dreams soon analyst.

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By Nadeem Walayat

http://www.marketoracle.co.uk

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Stock Market Crash Nightmare! :: The Market Oracle :: Financial …

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