New York, NY (PRWEB) July 03, 2012
Michael Lombardi, lead contributor to Profit Confidential, believes the bear market rally that started in March of 2009 is getting tired and near its top. Lombardi looks at the market from a technical perspective, and he thinks the right shoulder of a classic head-and-shoulders pattern has been completed.
“I have been ready to throw in the towel on this bear market rally, but given that the government and the Federal Reserve have fought the natural forces of the bear market tooth and nail, the bear market rally—the “bounce” in this secular bear market—has been long,” says Lombardi in his article “Where the Stock Market Goes From Here.”
Lombardi believes the market is in phase II of a bear market, which gives investors the false impression that the economy has turned the corner.
“This phase of the secular bear market is still upon us,” says Lombardi. “Phase II in a bear market is often referred to as a ‘sucker’s rally.'"
Lombardi believes we’re close to the beginning of Phase III of the secular bear market, in which stock prices come crashing down again, bringing them down to the point at which the Phase II bear market started or lower—in this case, 6,440 on the Dow Jones Industrial Average, about 50% below where the stock market sits today.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.