Enough Americans Have Already Voted - Chaos Is Coming!

By: Chris Vermeulen | Mon, Apr 4, 2016
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To me, there is a big difference between the average investor being bearish on the market which we typically see right at the end of a bear market when trillions have been lost because of falling stock prices. But, compared to those who are searching the keyword phrase in Google "bear market" at any given time I look at it as a leading indicator.

You see, I think people searching on Google for specific topics specifically "bear market" are not the average Joe investor who does nothing but ride the emotional and account value roller coaster as markets fluctuate and don't even know what a bear market is or even think to search it.

Instead, I feel those searching Google are the educated and active investors and trader who are the ones who create market trends and significant turning points in the market. These are people being proactive learning and adjusting their portfolios to avoid losing money and/or to profit generously during market downturns just as I do.


Stocks Are In A Bull Market When Google Tend Looks Like This:

The graph below shows different shades of blue. The lighter blue colors mean fewer searches for the term "bear market". This is when the educated traders are bullish on the market and continually buying more shares, thus supporting the market trend. The dark shaded states are where specific regions of people are more bearish than the rest of the states. When the chart looks like this (light blue) we expect higher prices in the stock market.

Stocks Are In A Bull Market When Google Tend Looks Like This


Stocks ENTERING A NEW BEAR MARKET If Google Tend Looks Like This:

Take a look at the two charts and graphs below. Both of these look very similar to each other. The one on the left shows us what the educated investor was thinking and doing with their money just before the bear market of 2008 and the final washout low in 2009.

Now, if you look at today's Google trend which is the image of the US on the right-hand side you will see both look very similar to each other. To add more depth to this analysis if we were to compare the market breadth and internals for the US stock market they are also very similar in nature. Both of these types of analysis combined paint a clear bearish picture for stocks looking forward 6 to 12 months from now.

Just look how much darker blue both of these charts are compared to that during a bull market when investors are putting new money into stocks, which is the first graph explained above.

Now let's look at the bottom of this image where you see the interest over time line chart for the number of searches on "bear market" in the USA. From what this data is telling us, we are days or weeks away from a significant market top in stocks and the start of something that will wipe-out most individuals life savings once again... This will be my third time experiencing this type of event as a trader - 2001 tech crash, 2008 financial crisis, and now the 2016 economic crash.

Bear Market Trends


Concluding Thoughts:

In short, I feel the US stock market specifically the large-cap stocks are going to provide a huge opportunity for investors who understand what is happening and how to take advantage of it.

Google has provided us with some excellent information to help identify and time major market turning points for long-term investors and short-term active traders like you and me.

In 2008, we had a very similar situation set up in the market and I was able to generate life-changing returns from these moves, I should note there are two major plays here, not just one.

These incredible trade setups are a once in a decade opportunity and more money can be made during some of the roughest times in the stock market and economy if you know which simple trades to place and when to buy and sell.

 


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Chris Vermeulen

Author: Chris Vermeulen

Chris Vermeulen
President of AlgoTrades Systems
www.TheGoldAndOilGuy.com

10126 Hwy 126 East, RR#2
Collingwood, ON, L9Y 3Z1

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Chris' mission is to help his clients boost their investment performance while reducing market exposure and portfolio volatility.

Chris is also the founder of TheGoldAndOilGuy.com, a financial education and investment newsletter service. Chris is responsible for market research and trade alerts for of its newsletter publication.

Through years of research, trading and helping thousands of individual investors around the world. He designed an automated algorithmic trading system for the S&P 500 index which solves his client's biggest problem related to investing in the stock market: the ability to profit in both a rising and falling market.

AlgoTrades' automated trading systems allows individuals to investing using either exchange traded funds or the ES mini futures contracts. It is supported by many leading brokerage firms including:

- Interactive Brokers
- Trade MONSTER
- MB Trading
- OEC OpenECry
- The Fox Group
- Dorman Trading
- Vision Financial

He is the author of the popular book "Technical Trading Mastery - 7 Steps To Win With Logic." He has also been featured on the cover of AmalgaTrader Magazine, Futures Magazine, Gold-Eagle, Safe Haven,The Street, Kitco, Financial Sense, Dick Davis Investment Digest and dozens of other financial websites. His list of personal and professional relationships approaches 25,000, people with whom he connects and shares is market insight with out of his passion for trading.

Chris is a graduate of Seneca College where he specialized in business operations management.

Chris enjoys boating, kiteboarding, mountain biking, fishing and has his ultralight pilots license. He resides in the Toronto area with his wife Kristen and two children.

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