US Stock Market Conclusion, or There are three ways to play a bear market.

Since the beginning of January 2014 stocks have shown signs of institutional selling. This can be seen in the small capitalization stocks index the Russell 2000. This group of stocks generally leads the S&P 500.

The chart posted below shows some of my analysis of the SP500 index. This chart shows the 200 day moving average which is a great indicator of the major trend of the market. Green means bull market, red indicates bear market.

Also the support trend line give us a feel on how soon a breakdown in price may happen. It appears to be just months away…

The chart below shows a very bullish outlook of a minor correction of 30% in the next 36 months. Also I do have analysis that shows that if we break below the 30% level we could have a 50-60% correction which could trigger a chain reaction of issues including the US bond bubble to burst.

There are three ways to play a bear market:

• The first is to do nothing, which is what most people do as they watch their life savings slowly evaporate right in front of them month after month.
• Second, is to liquidate a large portion of equities and sit safely in cash while others lose money.
• The third and last is to position yourself to profit from a falling market. It’s known that stocks fall 4-7 times faster than they rise, which means you can potentially make 7 years’ worth of profits in just 1-2 years if done correctly.