Timely Quotes You Should Know

1. "One of the biggest problems we face is that there is no historical template for current global market conditions so we're all flying blind to a large degree," said Deutsche Bank credit strategist Jim Reid. "Never before have so many of the most important countries in the world printed so much money and left base rates so low for so long."

2. August ended with more than a 5% loss on the S&P 500, the worst performance for the month in 17 years and down 7.5% from its July high. According to Jason Goepfert at SentimenTrader, after August losses of this magnitude since 1928, September sported a positive return only 4 out of 13 times, posting an average loss of 5.4 percent. When they rallied, stocks only rose above August's close by an average of 1.4 percent. When they fell, the drop averaged 8.3 percent. In his words, that's the data reveals a "terrible risk/reward ratio" in stocks right now. September is historically the worst month for markets
http://safehaven.com/article/38836/market-summary 
 
3. Do not believe it when you are told that we have seen the bottom. This is only the beginning. The danger now is going to be the perception of false bottoms and false hopes as the bear ultimately takes the market down into the 4-year cycle low.


4. This Is Still The Most Dangerous Stock Market Environment Since the Inception of the Averages in 1896.

5. I have been asked, Can it be saved? I have learned to never say never. But, given the presence of the DNA Markers, it should be checkmate for the market. Therefore, this should now be beyond the Money Master’s ability to save it. Short of an all out printing of money and openly just buying the market, this should be a done deal. However, let’s suppose that we see the Money Masters rollout an even more insane liquidity/buying campaign. If so, we would have a much bigger issue than a stock

market crash. In the event this should happen, then we have truly seen THE END of free markets. In the event this should happen, we could not stand in its way. But, that said, if this were to happen, they would only make matters far worse than they already are because regardless of how high they drive the market up, the cycle must ultimately contract and we would ultimately see another setup form.

 http://www.cyclesman.com
*******************************I agree all information should be taken with a grain of salt. I agree emotion should be removed from market trading as much as possible preferably by having a defined system even if as simple as dollar-cost-averaging forever. Having said that, I like to study history and mathematics and those people that study history and mathematics. I have used the services of Sentimentrader and Tim Wood "The Cycles Man" from time to time and they have good track records using history and math. SentimenTrader is essentially telling us that SPX is at grave risk of another sharp downleg in September and into October despite many recent extreme oversold readings. More accurately than OEW, Tim Wood statistically identified the tops and bottoms of the stock market in 2000, 2002, 2007, 2009 and now 2015. Although Tim identifies short and intermediate term cycle tops and bottoms, he did not call for a bull market top in 2011 nor any time until mid-August 2015, because he does so using history and statistics. He is also calling for a break of the 667 low based on secular bear market history, but that partly depends on how you define secular bear markets because 1937 and 1978 for example made higher lows. Luckily, people like Cycles Man (and Sentimentrader) will change their calls/projections once the statistics and history tell them to, so if the DNA Markers for a bull market appear or the volume, monetary velocity or other factors in locating a secular bear disappear, they will change course accordingly. Until then, you have been warned by a lot of history and math, and not just an insane erratic trader like me, that the next 6-12+ months could be among the worst markets in history. Of course, I like to think my dRSI research, my annual reversal research, my discretionary spending lag indicator, my exponential parabola findings, my technical scoring and other findings augment Cycles Man and Sentimentrader, but that is up to you to decide. In summary, risk-reward is horrible right now for an intermediate-to-long term investor and apparently bad for the short-term as well, although who knows what tomorrow will bring. Good fortune.