Articles

By: Chris Rowe — November 20, 2018

How I Avoid Two Bullet-Holes in My Head

Every year I struggle with a life threatening thought.

CHRIS

I want to say things to you, in my articles, that could put me in danger.

I want to tell you about how the market is pushed lower, to scare you out of stocks and then... after purchasing your stocks, these same people run the price back up to sell your stock back to you.

But, what I've just said, is as far as I'll go.

Instead, I'll make this the easiest article you've ever read from me...

It's like a picture book.  Less talkie... more lookie.

They say a picture is worth 1,000 words.  Below, are a bunch of pictures that tell us the stock market is at an amazing entry point.

And now... no more talking.

A 17-year weekly chart of S&P 500 with highlighted weekly exponential RSI buy signals highlighted.

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Short-term market breadth indicator "%10-week".  Feel free to match the years to the S&P 500 chart, above.  Or trust me that when the following chart is this low, it matches major lows in the S&P 500.

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Short-term market breadth indicator "%30-week".  Feel free to match the years to the S&P 500 chart, above.  Or trust me that when this chart is this low, it matches major lows in the S&P 500.

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Long-term market breadth indicator "NYSE BPI".  This reading has gotten much lower at bear market lows, in the past.  This one suggests we may have more to go, but still a very low point for stocks.

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RSI Positive Divergences

Next is a series of charts showing what the stock market looked like at the time of an RSI positive divergence, and then what happened next.  Today, we are looking at once such event, so I can't show you what happens next since my time machine is on the fritz.

S&P 500 Feb 2018 - Now.

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Right now, the S&P making lower lows while the exponential RSI making higher lows.  (Positive divergence).

Let's look at similar pictures and what happened next.

January 2016 Low...

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And here's what happened next...

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Feb 2014 Low...

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What happened next...

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Aug 2014 Low...

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And what happened next...

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The 2013 Lows...

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What happened next...

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The 2012 Low...

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What happened next...

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The 2011 Low...

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What happened next...

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The 2010 Low...

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What happened next...

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The 2009 Low...

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What happened next...

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Finally...

Here's a 10-year chart of S&P 500 above a chart of the VIX (fear gauge).

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Every year or so, a bunch of "1%-ers" get together and shake you out of your stock positions.  They buy the stock you sell out of fear and they laugh their way up to the next high.

I may have misspoke.  Did I say 1%?

I should have said a small hand full of 0.01%-ers.

There aren't many people who control the financial markets. I can't count them on my two hands but if I could borrow your two hands, then we could count how many people control the global stock markets.

I grew up on Wall Street.  I lived across the street from the New York Stock Exchange.

My dad grew up on Wall Street.  My step-grandfather grew up on Wall Street.  And we've been family friends with some of those who control the global markets.

I've worked with people and I have seen things that, if I were to reveal it all, I honestly fear it could put me in an unfortunate and mysterious plane crash or car wreck (with a bullet hole found in my head).

If I say everything that's on my mind, publicly, then I might end up falling into an (alleged!) deep depression and (allegedly!) committing suicide... with two holes in my head.

So let's just follow the technical indicators and participate in the annual transfer of wealth that these members of "the boys club" create for us each year or so.

Cheers!

Chris Rowe

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