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 gave a talk to his clients this week, and warned the S&P hitting new highs means the bull market is not over, he told investors that this is a clear sign that those in the know are weighted for more upside action soon, as we continue to see low interest rates form the ECB and still no sign of radical tapering, meaning they are still shuffling billions of dollars into the market each month, which is just sending the market up higher.
The bears have it all wrong he said. "We are now in the stratosphere on the market, where we have never been before. New highs! While that is dangerous it’s also a sign of strength at the same time, and for higher highs to come on the market soon. Just when will that happen, well no one knows, but those are the higher odds is all"
In an email, to his investors chip spoke about the 1900 level being a psychological level. Meaning, that every time we got close to that level, the market will round off and head back down. It was a psychological roof that many traders thought we could not get past. Now we are past this magical 1900 number, there is more fresh money coming into the market, and that is breeding a certain type of confidence we have not seen for months. When investors get confident, they start throwing more money back into vehicles that they are know work. Such as the indicies, stocks, ETF’s and certain sectors that were doing well 6 months ago.
There are rumors of a crash in 2014, but chip is the first to tell others not to listen to pundits and the blogosphere calling for a crash. There has been many people calling for a crash since about 2010, and yet it has not happened. Chip says the path of least resistance is now ruling the roost. That means that the chance of higher prices for the market in this current bull market is highly likely.
People who have lost money and are calling the market irrational. Yet, these same people do not understand the single principle that applies to all markets. They are a game based on FEAR and GREED. The stock market is an environment that can stay irrational far longer than an average trader can stay liquid, or capitalized. "When the market is ready to top out, the market will tell us " Chip said, and so far there are no warning signs or red lights going off yet. In fact he hinted this bull market is hitting an accelerated momentum and will not be surprised if we see the 2000 or 2100 in the S&P later this year.
Chip warned last week that the mass media have turned bearish because the market kept hitting new highs. He quoted "Just because the market is at new highs, its not a sign to get short, shut your computer down and walk away smiling about the profits you are about to make in the coming crash" Some traders have been doing this since 2010 and it has ended up in heartache and big hefty losses. 2014 will claim more victims he added.
Chip reminisced about the 2006 - 2007 lead up to the crash. "In 2006 and then again in 2007 you had all these analysts and pundits predicting a crash, but the market did not start selling off until the start of 2008" so he is warning his members to be careful and not fall for the trap of the mass media.
In an interview earlier this year, Chip talked about the getting through 2014 first. "Its always better to focus on the short term first" He said. Chip a man of his craft is very well known for his accurate short term predictions in the market, and told interviewers "right now there is nothing to be alarmed at, but traders should be cautious going into the end of 2014" There are some warning signs which are alarming, but nothing to tell us the market is about to crash hard like it did back in 2008.
Most people are not in tune with the market right now, and most think that a crash is due, 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 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 looking at and why they are always profitable. Now you too have the chance to see how easy it is to profit in 2014 as the bull market continues.
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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