ALTITRADE PARTNERS™ SAYS A
KEY-REVERSAL DAY COULD HAPPEN THIS WEEK
October 14, 2014 - InvestorsHub NewsWire- Altitrade
Partners™ says that there is a strong likelihood that the stock
market could experience a key-reversal day sometime this week.
In a piece entitled Are We Witnessing the Setup to The
Most Important Macro Trade of 2014?, the firm lays out its
thoughts as to why investors could see a classic selling climax in
the stock market which would then be followed by a quick reversal
of prices. Altitrade Partners™ believes that if this should occur,
it could mark a very important short-term bottom in the stock
market.
We follow a number of technical and sentiment indicators which
began flashing warning signs to us over the late summer, said the
firm’s Chief Investment Officer and Senior Managing Director. Our
concerns became more pronounced a few weeks ago, as more of these
indicators began to reach critical historical levels. In view of
what we were observing, we issued a press release highlighting two
reports which we authored. They were both released on the Seeking Alpha website on
Wednesday, September 24, 2014.
In those reports we laid out a number of reasons why we were
expecting a short-term correction to begin very shortly. In
addition to these two Seeking Alpha articles, we had previously
issued a report earlier in the month of September which forecast
that the upcoming Alibaba IPO would usher in the
beginning of the end of this great bull market.
The stock market has followed our in-house script very closely
over the past few weeks, and we now believe that the market is
about to enter into the climactic phase of the current correction,
which will result in a textbook pattern of climax selling.
We envision this next phase of selling to be vortex-like, which
will then be followed by an exhaustion of sellers that typically
leads to a quick reversal of prices. This type of price and volume
action is reminiscent of past historical key reversal days that
have led to a short-term bottom from a technical standpoint.
Given the amount of liquidity that has been driven into the
stock market over the past few years, we would not be surprised if
we saw an 800-1,000 point intra-day swing in the Dow Jones
Industrial Average, if we get a key-reversal day.
We could be down four or five-hundred points in the morning,
followed by a quick reversal to where we wind of being positive at
the end of the day by four or five-hundred points. While we haven’t
had that kind of volatility in a while, we wouldn’t rule anything
out.
Investors need to prepare for the likelihood of such an event,
and we have outlined some of our suggestions of how to deal with a
fast and furious drop in prices in our reports.
For those who have been to the Altitrade Partner’s website, or follow us on Facebook and Twitter, the events of the past two weeks have not
come as any surprise.
We will continue to post our thoughts on social media, so that
all investors and traders might benefit from our insights.