Chart watchers have noticed an eerie pattern – the bull market of 1982, which ended in the Black Monday stock market crash of 1987, looks way too much like the current bull market.
The shellacking the markets took last Thursday is the most powerful warning sign we’ve seen yet that things are not what they seem in the financial markets. For lack of a better term, it’s a bearish omen, despite Monday’s recovery.
Margin debt, the amount of money people have borrowed to buy stocks, is not only at a record high – it’s accelerating.
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
Many investors are convinced the market is stacked against them. It is…. but not for the reasons you might think. Dismal returns actually have very little to do with super computers, research, insider information or access to the trading floor. The real issue comes down to something very simple – the difference between how individuals and professionals approach stock market volatility. Most investors head for the hills when volatility rises.
Successful traders, on the other hand, embrace it because they know stock market volatility represents an opportunity.