Stock Market Correction Likely - But Not Bear Market #stockmarketcorrection #stockmarket

Summary

The speaker shares their opinion on the QQQs' potential 10% drop by May 20th, based on historical market trends and a funnel analysis. They emphasize that this is not financial advice but their personal insight, inviting others to share their thoughts. The speaker uses historical data to support their prediction and highlights the importance of community knowledge in making informed investment decisions.

Takeaways

• 📉 The speaker predicts a 10% drop in the QQQs (NASDAQ-100 ETF) between the current date and May 20th, possibly affecting the Dow Jones and S&P as well.
• 💬 The prediction is based on historical market behavior and a funnel chart analysis, not financial advice.
• 📈 The market is believed to be strong, driven by artificial intelligence and machine learning, despite the anticipated correction.
• 📊 The funnel chart shows that as the market narrows and drops below the lower line, it historically drops a percentage of its rise.
• 🔄 Historical patterns indicate a 38% drop over 38 weeks, a 245% rise over 96 weeks, and a 145% rise over 43 weeks.
• 📉 The most recent drop of 12% over 12 weeks suggests a potential continuation of this pattern.
• 🔢 The speaker estimates that the 10% drop will occur over the next 10 weeks.
• 📅 The expected timeline for the 10% correction is around May 20th.
• 💡 The speaker emphasizes the importance of learning from past market history to predict future movements.
• 👥 The speaker invites others to share their opinions and contribute to a collective knowledge base for better investment decisions.
• 🚌 The speaker encourages joining their 'tribe' for shared learning and investment insights, offering a discount for the Platinum level on their website.

Q & A

What is the predicted change in the QQQs between now and May 20th?

The predicted change in the QQQs is a decrease of about 10%.

What is the speaker's basis for predicting a 10% drop in the QQQs?

The speaker's basis for predicting a 10% drop is an analysis of historical market trends and a funnel chart that shows a pattern of rises and drops in the QQQs.

What does the speaker mean by having a 'belly button'?

Having a 'belly button' is a humorous way the speaker uses to say that everyone has the right to have an opinion.

What is the significance of the funnel in the chart presented by the speaker?

The funnel in the chart signifies the narrowing of the difference between higher highs and higher lows, which historically precedes a market drop.

How long did the QQQs drop after reaching a peak in March 2020?

After reaching a peak in March 2020, the QQQs dropped for 36 to 38 weeks.

What percentage did the QQQs drop during the 38-week period following the March 2020 peak?

The QQQs dropped by 38% during the 38-week period following the March 2020 peak.

What happened in the market after the QQQs dropped 38% over 38 weeks?

After the QQQs dropped 38% over 38 weeks, the market reversed and started creating higher highs and higher lows again.

What is the expected duration for the predicted 10% drop in the QQQs?

The expected duration for the predicted 10% drop in the QQQs is about 10 weeks.

What stocks have already shown significant drops that might indicate the start of the predicted 10% drop in the QQQs?

Some stocks that have already shown significant drops include Adobe (down 14%), Palantir (down 15%), Apple (down 15%), ASML (down 11%), Google (down 9%), Intel (down 16%), Meta (down 9%), Nvidia (down 8%), SMCI (down 9%), Snowflake (down 34%), and Apollo Global Management (down 24%).

How does the speaker encourage participation and contribution from the audience?

The speaker encourages participation and contribution by inviting the audience to share their opinions and knowledge, emphasizing that it's a team sport and that collective knowledge can lead to better investment decisions.

What does the speaker suggest for those interested in joining the community for stock discussions?

The speaker suggests visiting their website, Best of Us Investors, and signing up for the Platinum level to access resources like the charting tool used in the analysis, with a 50% discount for the next 90 days.