Stock Market?
Where is the bottom...
Simple.
In the midst of the last financial crisis in 08,' the Federal Reserve stepped in with quantitative easing, that is an unprecedented buying of assets-the introduction of new money into the money supply by a central bank, at DOW 6000.
This Federal Reserve buying spree at DOW 6000, actually created an artificial floor under the stock market, and where the REAL bottom was at that time- simply no one knows.
Without going into the extreme details of this, something I do discuss in my daily MarketReport Blog (Click HERE: https://www.traderschoice.net/ ) the economic environment and stock market valuations have an absolute ZERO correlation with reality at the present time.
We understand that a hard floor was created by the Federal Reserve managing of the stock market at DOW 6000. Since that time, every single world central bank has followed suit creating a fake financial environment which has manifested the largest, in terms of magnitude, distortions ever to be seen in the history of the world financial markets.
Understanding that an artificial floor was placed under the US markets at DOW 6000, and where the real bottom was- no one really knows, it is NOT unreasonable to understand that a retest of the REAL low in the DOW is a possibility.
Where is that REAL bottom? Well we know it is below 6000, so DOW 3000 is a REAL possibility.
Gregory Mannarino
Visit my website, TradersChoice click HERE: https://www.traderschoice.net/