The evidence supporting the market sell off coming our way

Three technical indicators that say the market is headed down any where from six months to 2.5 years.

In summary the long term market is looking like it will drop about 15% over the next six months to two and one half years or more. These numbers are not written in granite and will be revisited when the timing is right.

1. Long term average is headed down shown on monthly chart.

Long Term Trend

2. Long term head and shoulders pattern shows market top on weekly chart

Long Term Head and Shoulders sell signal

3. Long term Hindenburg indicator, (77%) accurate, says there’s a sell off coming.

Right now we are two days into a short term (1-2 weeks) recovery from the recent sell off. This time should be used to get out your weaker holding and get into the defensive positions mentioned in the last article 8/12/10.  In summary these were, buying gold, high dividend (5%) world dominator stocks and other very high yielding stocks. Other invesments to concider are short EFT’s and the VIX (put/call ratio) EFT which typically goes up in down markets.

All charts are the courtesy of Stockcharts.com

Miscellaneous

These articles should be saved by the interested reader. They are all connected in one way or another and will eventually be used in a book to be written by Alexander Newman. The book to be written is titled; “It’s Not Your Money”.

Please fell free to share this article with your friends and relatives.

Disclaimer: The information herein is for informational purposes only, not investment advice and is only the opinion of the author, Alexander Newman. He is also using this investment information for his own investment purposes.