Michael Markowski, who utilized his Bull & Bear Tracker (BBT) algorithm to predict the October 2018 market crash says the BBT’s current déjà vu metrics indicate a high probability for an October 2021 Crash. Markowski’s headline for his Friday October 5, 2018 Equities.com article; “Perfect Storm NOW Brewing for Possible Market Crash on Monday” proved to be incredibly accurate. The prediction was one of the most accurate crash prediction articles ever published. The chart below depicts that the S&P 500 had declined by 5.4% by 10/11/18, which was six days after Markowski’s 10/5/2018, prediction. The S&P 500 continued to decline throughout the 4th quarter of 2018. On Christmas eve 2018, the S&P 500 had closed 18.5% below its Friday 10/5/2018 close.
According to Markowski, the metrics which powered the BBT at September 30, 2021, were déjà vu since they were virtually identical to the BBT’s metrics at October 5, 2018. Based on the déjà vu metrics, Mr. Markowski is predicting that a crash or a minimum double-digit correction for the US market’s major indices including the S&P 500 will begin in October 2021. To hedge or profit from the volatility which is imminent Mr. Markowski is recommending the following VIX related securities:
- UVXY for aggressive traders.
- VXX for conservative traders.
Michael Markowski says that the most volatile correction since 2020 will be followed by a dip buyers rally to take the S&P 500 to back above its September 2021 all-time high. After the S&P 500 fails to get back to its all-time high the eighth secular bear market since 1802 and the first 2000-2009 will begin.
To learn why the secular bear will result in a steady decline for a minimum of 8 years with a minimum decline of 45% and what type of investments should be owned during a secular bear market view Mr. Markowski’s August 12, 2021 Money Show Secular Bear markets presentation.