The share prices of three members of the Dow Jones 30 composite, IBM, Johnson & Johnson and Procter & Gamble performed cliff dives after announcing their first quarter 2018 earnings during the week ended April 20, 2018.   Based on the performance the three have been named the 12th nail in the 2009 Secular Bull’s coffin.   

The share price of Johnson & Johnson and IBM traded to six-month lows and based on their most recent prices could easily trade to 52-week lows.  The share price of Proctor & Gamble fell to a two year low.

The three have joined with four of their fellow Dow Jones 30 members to seal the casket.  They include Goldman Sachs and J.P. Morgan who were named as the 11th nail in the Secular Bull’s coffin because of the lackluster performance of their shares after their earnings announcements.  Caterpillar and Boeing had also been named as the 5th nail in the Bull’s coffin due to their trade war and tariffs exposure.  

The dozenth nail further increases the probability that the venerable Dow 30 composite index will not get back to its January 2018 all-time high for at least eight years.  The likelihood that the new secular bear market was born in January 2018 has also increased. For more information about secular bulls and bears and why they last for a minimum of eight years see my February 2018, article “Bull DEAD, BEAR DOB 1/31/18: Expect Stock Market Decline of at Least 50%”.  The video below provides details about the secular bull and secular bear markets that have occurred since 1802.

If you wish to remain in the markets until the significant correction begins or want to profit from trading the S&P 500’s triple leveraged short (SPXS) and long (SPXL) ETFs a subscription to the Bull & Bear Tracker is recommended.  The Bull & Bear Tracker has a proprietary algorithm which tracks the market. For information about the Dollar/Yen which powers the Bull & Bear Tracker go to https://bullsnbears.com/usd-jpy-indicator/.  To subscribe go to www.bullbeartracker.com.

Disclaimer.  Mr. Markowski’s predictions are frequently ahead of the curve. The September 2007 predictions that appeared in his EquitiesMagazine.com column stated that share-price collapses of the five major brokers, including Lehman and Bear Stearns, were imminent. While accurate, they proved to be premature. For this reason he had to advise readers to get out a second time in his January 2008 column entitled “Brokerages and the Sub-Prime Crash”.  His third and final warning to get out, and stay out, occurred in October of 2008 after Lehman had filed for bankruptcy.  In that article “The Carnage for Financials Isn’t Over” he reiterated that share prices for Goldman and Morgan Stanley were too high.  By the end of November 2008, the share prices of both had fallen by an additional 60% and 70%, respectively — new all-time lows.