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 is a retired bank trader, and as he continues in retirement to update and refine a complex econometric model that generates six-month forecasts for the S&P 500 — and share them with inquiring clients who have experienced a lot of success with some of chip’s calls these past few years, as scary as they might sound.
Six months ago, when the S&P 500 was trading just above 1,800, he was forecasting that this index would today be around 1,930. As fate would have it, the index made it to 1925 today.
In an email, to his investors chip acknowledged that his latest forecast is "kind of scary after the [market’s already] sharp rise." Nevertheless, he continued, his model has "frightened many people before and he was sticking to his guns" So to speak. It may be that the market is entering a euphoric period in which bears might be scared totally out of the market, while we see a further 10%-plus rally coming on the S&P" he told his clients.
It is probably too early to tell if Chip will turn out to be right. If so, the market would probably want to take a breather here, but if that was to occur it would be just like a marathon runner stopping for a rest half way, at the side of the road, and then recharge his batteries for the second half of the race.
Although there are many pundits and predictions for a crash in 2014, chip told us that in the underworld of the mass media and financial news channels, no one ever tells you these outlets are paid big sums of cash to promote bearish comments, and propaganda live on air each week. It causes many investors to play losing trades causing them to blow up their accounts and lose money quickly, when they do not realise the larger funds and institutes [in the know] are doing the exact opposite and profiting tremendously at the same time. They are normally on the other side of the tape and gloating to their friends and colleagues on their lunch break.
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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Brisbane, Queensland - Australia