MACD, M2 And Millennials Indicate A Major Correction Is Imminent

Summary

  • I recently showed you a historically overvalued market that was long-term overbought and running on leverage.
  • Now, MACD is showing extreme readings that indicate a correction is imminent, and it could be epic.
  • On the liquidity front, the M2 money supply is plunging.
  • If you "believe in" risk management, I haven't seen these many signals and circumstances line up in 25 years.
  • This idea was discussed in more depth with members of my private investing community, Margin of Safety Investing. Learn More »

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I have run a series of articles now since August suggesting that early 2022 could be in line for a significant stock market correction. In this piece, I suggested that fundamentals, technicals, and leverage all were lining the stock market

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This article was written by

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I own a Registered Investment Advisor, however, publish separately from that entity for self-directed investors. Any information, opinions, research or thoughts presented are not specific advice as I do not have full knowledge of your circumstances. All investors ought to take special care to consider risk, as all investments carry the potential for loss. Consulting an investment advisor might be in your best interest before proceeding on any trade or investment.

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