A Potential Final Sucker Breakout, Followed by a Significant Drop | Urgent Warning Signs Persist

by | Jul 30, 2023 | Rollover IRA | 15 comments

A Potential Final Sucker Breakout, Followed by a Significant Drop | Urgent Warning Signs Persist




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We MIGHT GET one last Sucker Breakout and THEN a BIG DROP | WARNING SIGNS ARE Still Screaming

As the global economy continues its rollercoaster ride, investors have been eagerly awaiting signs of stability and recovery. However, with mounting concerns and warning signs flashing, experts are cautioning against a false sense of security. They believe that we may experience one last sucker breakout before facing a significant market downturn.

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The term “sucker breakout” refers to a short-term surge in the market that lures unsuspecting investors into thinking the worst is over. These breakouts typically occur after a prolonged period of decline, giving false hope to those desperately seeking positive news. Experts are warning that we might witness one last hurrah before the market takes a nosedive.

Several indicators suggest that the current market rally might be a temporary spike rather than a sustainable recovery. Firstly, the global recession triggered by the COVID-19 pandemic has had a profound impact on various sectors and industries. It is unrealistic to expect a quick recovery when many businesses are grappling with insurmountable challenges. While government stimulus measures have provided some relief, they cannot indefinitely prop up a struggling economy.

Secondly, high unemployment rates continue to plague economies worldwide. Despite some job gains, millions remain out of work, leading to decreased consumer spending and a sluggish recovery. With uncertainty surrounding future job prospects, individuals are likely to prioritize saving over spending, further hampering economic growth.

Additionally, the threat of a second wave of COVID-19 infections continues to loom large. As countries cautiously ease restrictions, experts warn that a resurgence of cases could force governments to re-impose lockdown measures. Such setbacks would deal a severe blow to businesses and confidence in the markets.

Moreover, geopolitical tensions and escalating trade disputes between major economies further exacerbate concerns. The unpredictability stemming from conflicts and protectionist policies creates an unfavorable environment for stable economic growth.

Although the stock market has witnessed a remarkable rebound in recent months, analysts fear that it has become disconnected from the reality on the ground. While stock prices soar, the disparity between market valuation and the underlying fundamentals of many companies is cause for alarm. P/E ratios, which indicate the price-to-earnings ratio of a stock, are at dangerously high levels, reminiscent of previous market bubbles.

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Investors must remain cautious and not be swayed by short-term market gains. History has shown that sucker breakouts often lure unsuspecting investors who later face significant losses when the market corrects itself. Financial experts advise investors to diversify their portfolios, incorporating assets that can better weather an economic downturn, such as gold, real estate, or stable dividend-paying stocks.

In conclusion, while it is tempting to be optimistic about recent market gains, it is crucial to remain vigilant and consider the numerous warning signs that are still very much present. A sucker breakout might be just around the corner, enticing investors with false hope. However, concrete economic indicators, combined with geopolitical uncertainties, suggest that we may soon face a big drop. It is essential to be prepared and proactive in protecting investments during these uncertain times.

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15 Comments

  1. Andrew Bell

    WARNING: This guy is usually wrong and has attention grabbing titles to get you to watch.

  2. Paul

    I won our bet John… not a single downdraft of 3 percent or more.. To the moon and if you believe the inflation report today, I have some bridges to sell you!! All manipulation John! go gold and silver!!

  3. Jon Sutton

    You have 50/50 chance of being right. Your record has not been good lately.

  4. s m

    it will eventually rain, 1 day

  5. zhhsheng

    Thank you for sharing. Financial education is crucial today, and a buy-and-hold strategy may not be effective. Linda Wilburn’s program taught me a lot about trading and improved my financial situation. Using trade signals generates competitive returns and stability. Time in the market vs. timing the market helps investors stay calm. Since I started, I've been making more money and seeing positive results.

  6. Roy DeSell

    Sorry John your still wrong, if we get correction, IMO no more then 8% to 10% correction, IMO all mkts headed much higher, I do agree PM ready to break out, gold to $3000.00 silver to $50.00

  7. Naznaz606

    eventually you will be right

  8. Coco

    S $ P will be 3800 by year end and then 3600 early next year.I will stay in CDs and treasuries till then

  9. Coco

    I want Banks to fail.I want a deep recessions.I want stock market crash to Covid level.I want Bankster Jamie punished.These banks short silver and gold.I want demented and corrupt son and brother imprisoned

  10. jverderber

    This suckers breakout has been going for 6 months now…

  11. MauriZio

    if this last sucker breakout isnt the last it will be the straw that broke the camels back.

  12. Mark Neilson

    I think your right something will hit the markets this month

  13. Cardinal Ezidi

    Thanks sir. See you on the webner tomorrow.

  14. Michael M

    Thanks John, appreciate your analysis

  15. maytenbull

    Hi Do you trade cpi if so before or after the news ?

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