Chip Smith, A Leading financial Market Analyst from http://sentiment-trader.blogspot.com says the last few months many pundits and leading analysts have been calling for a 1929 like stock market crash in 2014, while he has been telling his clients that things only look scary if you are a bear right now, or bearish on the markets. Chip is a man worth listening too as he called the last major crash just 3 weeks before it started, and also called the bottom of the market back in 2009 within weeks of that happening.
Chip has done well over the years and uses a contrarian approach to trading the stock market and reached out to his investors recently to explain what is going on. He accurately predicted the 2008 stock market crash 3 months before it happened. Last week he gave some of his knowlege and longer term projections and predictions at his blog - http://sentiment-trader.blogspot.com.au/p/vip-elite-group-trial.html where he gave his 3 secrets to trading a bull market, that we seem to be in right now. He also hinted at why investors should be careful in 2014.
Chip has been one to listen to recently, as he is getting nervous about how low the VIX has been lately on the market. The VIX or volatility index meter is bascially the inverse to the market. Its a total indicators on how much volatility is currrently in the market at any one time. Right now the Volatility Index, aka VIX dove 5.9% on the week to 10.73, the lowest mark since February 2007.
Volatility is fading, with the VIX trading within 2 pts of its all-time low, as confidence grew on the notion central-bank monetary stimulus worldwide will drive the global economy, extending the 5-yr bull market in equities.
The Fed said in its Beige Book business survey during the week that the economy expanded at a modest to moderate pace last month as auto sales led household spending and the labor market improved.
The S&P 500 rebounded 7.4% since a selloff in small-cap and Internet shares spread to the broader market, dragging the index to a 2-month low in April.
The Russell 2000 Index of smaller companies rallied 2.7% on the week, its best performance since February. It has recovered 6.3% from a May low.
US stocks indexes continued to set records on low volume and a narrow trading range.
The S&P 500 has not had a move of more than 1% at the close for 35 days running. That’s the longest line since a 38-day run ended in January 2007. About 1.8% shares traded each day in S&P 500 companies last month, the fewest since Y 2008, according to the data.
Hedge funds are betting the stock-market tranquility that is hobbling trading and hurting bank profits will be around for a while.
Large speculators are betting on lower volatility and were net short about 82,000 contracts on VIX futures last month, the most since October, data from the Commodity Futures Trading Commission (CFTC) show. The strategy will be profitable should the VIX continue its 22% fade this year.
Most people are not in tune with the market right now, and most think that a crash is due, because of the LOW VIX and because the market has gone up too high in the last few years. Chip was quoted as saying “Bull markets do not just decide to stop one day, or in a week, and then crash to ground zero. The current bull market is no different and there is a ways to go yet, in my opinion”
Chips studies and recommendations are said to be the best around, as he has a select criteria and a secret strategy. This gives him the a leading edge and ability to predict market movements before they happen, and his track record he seems to be a man who knows what he is talking about, as he has gained much media attention and also been sort after by many wall street traders, highly elite investors and fortune 500 companies for his services in the last several years.
Chip has a fantastic track record and normally charges exuberant fees for his futrues training, however he has opened his private VIP trading network for the next 7 days, FREE OF CHARGE at http://sentiment-trader.blogspot.com.au/p/vip-elite-group-trial.html where Chip shows investors what the big guys on wall street are doing at and why they are always profitable. Now you too have the chance to see how easy it is to profit in 2014.
About The Sentiment Trader:
Chip Smith is a full time trader, well renowned for his accuracy in calling stock market movements before they happen. He trains amateur investors and fortune 500 companies in see where the big opportunities lie with individual stocks, S&P 500, commodities, crude and other vehicles on the market. For more Please visit - http://sentiment-trader.blogspot.com
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Brisbane, Queensland - Australia