Yesterday we showed our valued clients the following chart. On Wednesday (April 29), the S&P 500 reached our target level, the 61.8% Fibonacci retracement of the Feb-March crash (red dotted line).
Yet on Thursday (April 30) it failed to break above that level. Of course, one day does not make a trend, but that makes Friday’s action important. As we’re seeing now, Thursday’s selling carried over into Friday and again today.
Then, take a look at the stochastics at the bottom of the chart. You can see it looks ready to cross over from an overbought level. The last time it did this was in February when it made its top.
Could this recent bear market rally off the March 23 low have been another big trap?
Three years ago Bert Dohmen, founder of Dohmen Capital Research, predicted,
“…a Stock Market Crash and Deep Recession ahead of the 2020 Election”
Now he says, “Don’t Get Trapped Again!”
He gave all of the reasons why a crash and recession would occur in our award-winning Wellington Letter. I repeated the warnings several times approaching the Bull Market Top this year.
And on February 23, the day before the start of the crash of 2020, we advised our clients in a Special Bulletin with the headline: “The Financial Market Storm Begins.”
In the last paragraph of the Bulletin, we wrote that “the dam may break.”
It did…the very next day!
Our members are part of the “Winning Minority.” While the vast majority of investors feel comfortable following the majority, consensus forecasts, our members know that only a small minority win the in the markets, or any other endeavor in life.
To be successful requires doing the opposite of the majority.
While most investors you know very likely suffered devastating losses during the historic crash, our valued Wellington Letter members were forewarned ahead of the downfall and able to prepare for the massive selloff, and even profit from it.
Take a look at the titles of our 7 issues published since late Jan 2020, just ahead of the major market plunge. Our members were saved!
- January 26: “The Bears Will Finally Get Their Turn”
- February 2: “The Bear is Growling!”
- February 17: “The COVID-19 Pandemic: The Greatest Health Crisis in 100 Years?”
- February 23: “The Financial Market Storm Begins”
- March 9: “A Historic Market Crash: Dow Loses 2000 Points, Oil Crashes 25%”
- March 15: “The Fed Panics!”
- March 17: “The Fed: Pulling Every Rabbit Out of its Hat”
Ask yourself, could the above have helped you save a fortune this year?
The losses for investors globally during this market crash are estimated to be above $24 TRILLION. That’s more than the annual GDP of the United States.
If you were one of the many unfortunate ones, which includes clients of perhaps 95% of all money managers, perhaps consider “elevating your investing strategy” today.
Stop listening to all the “free” self-serving and conflicted advice in the media.
A money manager can never turn bearish because his clients would ask, “why are we heavily invested in stocks if you are bearish?”
Wall Street analysts cannot turn bearish because it is bad for business. Why listen to them?
There is an old proverb: “When you’ve dug yourself a big hole, quit digging.” In other words, start doing the opposite.
It’s not too late, as we’re seeing clues right now that the next big market swing could be developing right now.
Learn more about the Wellington Letter to read our latest issue, published on April 30, 2020, titled “Support Actions Are Not Stimulation”.
Wishing you good health and prosperous investing,
Bert Dohmen, Founder
Dohmen Capital Research
Dohmen Strategies, LLC