As you know, the oil industry has been in a severe depression since 2014. Oil prices plummeted from over $100/barrel all the way down to $30/barrel. Today, that figure hovers around $50 and is showing little signs of returning back to the $100 level any time soon. As bullish speculators continue to get burned by “demand is finally back” or “supply is finally falling,” more and more oil giants fall on serious hard times.
The unanimous opinion is that the stock market will rise another 10%-15% in 2015. Even with the DJIA down more than 300 points on Monday, January 5, analysts in the media said things like: “I don’t see anything that could derail this bull market.” Another one said: “I see no signs of excessive euphoria.” These are comments you usually hear near market tops.
Economists are looking for a strong economy in 2015. Apparently they think the major parts of the world, China, Japan, Europe and Russia can go into recession and the U.S. will be immune. Bring out the rose-colored glasses.
I have written several bearish articles on Apple stock since the price peak of $705 last year September. In fact, six days after that top on Sept. 21, I wrote that it was probably the top. I predicted the next downside target of $520.
When that was reached, I wrote that it would go to $420, purely based on chart analysis.