SP500 weekly consolidation just before 2007 crash

Worth reading.

 

it's not worth reading

actually it's rather useless; stop trying to call for a top

 

People on this forum have been calling for a crash since the bottom after 2007 and that's a fact, not speculation.

 

What about before 2007? Top will come and many will lose like back then.

 

Let people stay naive. The more they are confident, the more you make money.
Why did Paul Tudor Jones make a fortune in 1987? Because people said "stop trying to call for a top".
Winners will stay winners because they expect the unexpected and act on it.
Losers will stay losers because they will always make again and again the same mistakes ("this time is different", "it was unexpectable", "it was not my fault" blah blah).

Chris Mac

 

Anyone who knows price action can tell you that the S&P has been showing signs of weakness for some time now. The daily chart is especially telling, but not so much so in the weekly. That being said, I don't think a crash is coming but there could be a strong correction.

 

A lot of people will lose life savings in the next plunge. This was true in every plunge. This is how the one percenters make their money.

 

"A lot of people will lose life savings in the next plunge. This was true in every plunge. This is how the one percenters make their money."

Yeah ? What about they were long during the 5 years bullmarket rather than calling for a top the whole time ?
Are you even short the market btw ?

 

Look at the charts and see the facts yourself: in 2000 millions lost everything, in 2008 millions lost almost everything, 201X millions will lose almost everything. It does not matter how much you are making now. Smart people take the profits and buy real estate. Staying in is suicidal tendency. Any geopolitical clash can send the SP000 down to 1000 in a few days.Then you will say that was not expected.

 

Real estate is definetely not the only alternative investment, are all smart people as assertive and with a vision lacking of nuance as much as yours ?
People wo just buy and hold should have survived all drawdowns especially with a diversified portfolio, not only equities I mean.
Not encouraging anyone to go long now btw, it might well crash, or not.
But hoping for crashes to reach the top bracket of net worth (or say the top 1% as you mentioned that number) in your life time is not the easiest way to get there.