Stocks Bear Market of 2017 Begins? Shorting the Dow At its Peak!

Stock-Markets / Stock Market 2017 Jan 31, 2017 - 04:48 AM GMT

This is a quick heads up for what could prove turn out to be the start of the stocks bear market of 2017. Those who have followed my analysis will know that after having ridden the bull for nearly 8 years, that following the election of Trump and the resulting rally right to the very edge of Dow 20k, that I concluded early December that it was the time to start distributing stocks holdings accumulated during the life time of the of the bull market, specifically seeking to reduce my stocks portfolio holdings by at least 50% as the Trump Reset looked set to soon usher in a bleak period for stock prices for much of 2017.

Ensure you are subscribed to my always free newsletter and youtube channel for forthcoming analysis and detailed trend forecasts aimed at capitalising on the Trump Reset.

By Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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Comments

Yuriy
05 Feb 17, 19:03

double top

The way the market behaves, we might see a double top now or even a spike a bit higher.

But 20100 still looks a good entry level.

Lets wait for your conditioning :-)

Nadeem_Walayat
05 Feb 17, 20:56

Dow Arrogant Trading

So far my arrognace paid off.

I exited first short at a good profit, then put on a second short at 19940, that got stopped at a small loss, gave back about 20% of my proft.

My current arrogant trade is a limit order to short at 20090 which so far has not been triggere, given the dows at around 20070 I may just short it at the market with a stop at 20150.

note, don't be under any misconseption I am in arrogant trading mode :) This is what I am like after a big win (banking bull market profits) so I guess until the market smacks me in the face I am goign to be trading pretty close to the edge of what a sane trader 'should' do.

P.S. DON'T TRY THIS AT HOME ! I HAVE 30 YEARS EXPERIENCE !

I STARTED MY TRADING CAREER OFF WITH TRADING THE 1987 CRASH LIKE AN INSANE MAD MAN THAT EVEN MADE THE BROKERS GULP and quention my sanity :)

Best

Nadeem

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