Its Over

Originally posted by 1ronnie ↑

This thread is about the end of the bull cycle and forewarning of the coming of the Big Kahuna.
I don't need people to "hijack" my thread with bullish counter-arguments (whether based on their actual belief or because they have a big position and are concern this thread will scare the pants out of investors!).

The All Ords and ASX S&P200 dropped 0.6% today despite a better Dow last Friday. And there's more than meet the eye... Last week, I posted the following below indicating that the fall in building materials sector stocks is a precursor to a recession, typically 12-24 months lag (the fall precedes the recession). Today, JHX (James Hardie), Boral (BLD) and CSR continue to hit a fresh 52 month low before a slight rebound. And WBC (Westpac) and ANZ continue to head towards their 52 month low as well.

https://hotcopper.com.au/threads/its-over.4002109/page-400?post_id=36467909#.W_JLKf8UnVJ

The time to plan is NOW. And that may mean selling into strength or reducing over exposures, rebalancing portfolios etc..

Expand

https://www.cnbc.com/2018/11/19/sto...pen-amid-mixed-signals-over-global-trade.html
https://www.cnbc.com/2018/11/19/every-faang-stock-is-now-in-a-bear-market.html

As mentioned in my previous post, the FAANG trade determines the direction of the market. FAANG is now in bear territory and still has a great deal to fall IF it were to drop back to where it started at the beginning of the year.

Facebook has already dropped 38.7% from its 2018 high

Apple - now $185.86 , Jan 3 $172.26 another 7.3%

Amazon- now $1512.29 , Jan 3 $1189.01 another 21.3%

Netflix- now $270.60, Jan 3 $201.07 another 25.7%

Google- Jan 3 $1065 now $1020, dropped 19.6% from its 2018 high

Apple in particular would be an interesting watch as it is on the brink of breaching its upward trend line since July 2016. Breaching it would likely take it to about $162 support , a 12% drop from here.

S&P500 has now dropped back below 2700 and I also mentioned that Nasdaq cant afford to fall below 7,000. It is now hovering at 7028 and closing in on the moving averages.

Note that Nasdaq climbed from 4,500 in early 2016 to above 8100 in Sept , an 80% rise in 2 years!