Title: Is the US Stock Market Headed for a Crash in 2021? Expert Analysis Reveals Shocking Similarities to 1929
The US stock market is showing eerie similarities to the crash of 1929, with the government’s tariff tax policies potentially acting as the catalyst for a market plunge. Many technology stocks have already taken a hit, and investors are on edge.
Analyzing the Dow and its advance/decline line, it’s clear that the market is teetering on the edge. The Transports have broken down, but the Dow itself has yet to signal a sell-off. The 42,000 level is crucial.
For investors, owning gold is a top priority. The weekly chart for the Dow suggests being cautious or even exiting the market. Potential buy zones are at Dow 37,000 and below. A drop to 37,000 could result in a 17% decline, while some Nasdaq holdings may plummet by 90%.
In summary, the Chinese stock market offers value, while the US market does not. Gold remains a top asset, with bullish signals on both short-term and daily charts. In a stagflation cycle, gold and miners could outperform as the stock market stagnates.
The escalation of tariff taxes could lead to a major bear market for the US dollar, causing prices to rise and the average citizen to struggle. Institutional money managers may flock to gold stocks, particularly miners, in search of safety.
The GDX daily chart shows a Stochastics buy signal, with bullish patterns indicating a gold bull era. Traditional technical analysis may need to be reimagined in this new market environment.
In conclusion, investors should be cautious of the potential market crash in 2021, diversify into gold assets, and consider the opportunities presented by the shifting market dynamics. Stay informed and be prepared for potential volatility ahead.