Market Poised to Decline by 50%

February 21, 2013, 11:01 am ET, BY Thomas H. Kee Jr- Editor, Stock Traders Daily| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

Stock Traders Daily started on the first day of January, 2000, we began at the peak of the Internet bubble, and we have navigated the down, up, down, and up again moves that have come thereafter.  Over the past 13 years we have been witness to it all, but throughout all of that we have learned one thing without question.  Those investors who neglect risk controls are almost always the ones who get hurt most when the music stops.  Those investors are the ones who do not have any money to buy at the bottoms because their monies are tied up in losing positions, they are only recovering losses when everyone else is making money, and those are the persons who kick themselves for not making intelligent decision when the writing was on the wall. 

On Wednesday a Fibonacci Based 3-step reversal confirmation catalyst hit the market, we have used this method to define major market tops and bottoms since 2000, and it has been very accurate.  When we incorporate the findings of our longer term economic analysis, The Investment Rate, into this evaluation our conclusion is that the Market can decline by more than 50% from current levels.  This should be a concern, but no one should take this blindly.  Read the Investment Rate, understand what this fundamental analysis says, and make your own educated decision.

The Investment Rate has never been wrong, it has predicted ever major economic cycles in US History in advance, and what it reveals about today is important for everyone to know. 

Making the right decision now is important.  Start with this: you must take off the Golden Handcuffs, and you must stop being so closely tied to the stocks you own.  Even the best companies can fall hard when the market declines.  Below are a few examples.

2008 declines in Top-Tier Companies

Our detailed trading reports for these companies tell us that they can fall again with the market if the market declines again as our analysis suggests.  We have similar reports on 1300 other companies, and all are associated with the fundamental analysis we have mentioned above. 

Start by evaluating the fundamentals of our economy using The Investment Rate, take a close look at the technicals of the market, and then review the stocks you own using a comprehensive and unbiased report so you can make educated decisions when the writing is on the wall.  If you do this, instead of recovering losses you can be picking up the pieces when the market falls again.

Support and Resistance Plot Chart for

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