Five Takeaways From the Bull Market's Demise

The bulls are starting to throw in the towel... and Wall Street is changing its outlooks (three weeks too late).

Dear Fellow Investor:

Well, that went poorly.

The Nasdaq had a 4% drop on Monday, its worst performance since 2022.

I’ve been heavily on the sidelines in cash since February 24.

Readers can recall that I sent a message warning that our Signal went red on February 21, that the FNGD (Microsectors Inverse FANG+ ETF) had crossed its 50-day moving average on February 24, and that there has been NO insider buying pressure despite this sizeable downturn.

We’ve been on top of it, but now, it seems that capitulation is starting to kick in. I read one of the most bullish traders' updates today, and he said that he’s out.”

He also noted that the bull market might be over.

Might?

As I’ve repeatedly repeated, there is no such thing as a bull market in the post-2008 landscape.

There are heavily liquid, heavily stimulated markets… or highly illiquid markets that fuel sharp downturns like in 2011, 2015, 2018, 2020, and 2022.

What’s happening now?

A few key things…

Takeaway 1: Trump or Yellen… or Stimulu…