When it comes to the stock market you’re usually right until you’re wrong. Winning streaks are rare. But Slipstream Trader Murray Dawes has been on fire recently. Murray’s been persistently bearish, even as each false rally has sucked more investors in. He’s been calling this downdraft correctly for months.
Murray’s latest stock market update on YouTube has just been posted. Here’s what he has to say about the latest action:
The German bond auction failure is a big fat canary in the coal mine. If people were doubting the gravity of the situation before they should be convinced now that things are getting very, very, scary.
The S&P 500 is getting close to the 1145 Point of control (POC) that I had as a target. From here we need to see how it performs at the POC. New targets are towards 1080-1100 in the S+P 500 in the medium term but in the immediate future we may see some support at the POC. That will not last long though. Look out below.
So according to Muzza, you might have a little short-term respite before someone pulls the trapdoor on this stock market. If you don’t like the sound of that, you can always hope that Murray’s streak of good calls has come to an end.
But as we are fond of saying, hope is not a strategy.
Speaking of which, China’s economy has turned from boom to bust.
for The Daily Reckoning Australia