Billion dollar Tech Crash

Referring to last week of May announcement: Thursday & Friday we expected a flash crash on U.S. bank stocks. We advised the sale of U.S. bank stocks. Goldman Sachs lost about $14 and then recovered. Flash crashes don't always result in recoveries; CNBC stocks channel bragged about a U.S. rise in bank stocks by ignoring the fact they only recovered to the previous level prior to the flash crash according to our researches.

Previously we warned that the last trading week of August 2017 also has the possibililty of a major crash. The hot air bubble is here now -- we said: "tech stocks remain high; if they do retreat slightly this summer as we expect they will recover by December".

This week our correct expectation for tech stocks to retreat have already started. The FAANG as they refer to it -- 'Facebook, Apple, Amazon, Netflix and Google (Alphabet) plus Tesla, NASDAQ' can expect to lose further since they have already lost billions in value since we said we expected tech stock values would retreat. This is strictly the result of limited investor confidence -- whose psychology we study. Watch the FAANG and related tech stocks to recover significantly in October and November so benefits are there when the FAANG stops declining in the near future.

And where goes Bitcoin?

The VIX has reached a 25 year low as investors avoid Wall Street stock purchases preferring tangible assets such as real estate. Investors feel that Wall Street stocks provide neither growth nor dividends at a satisfactory level. Bitcoin itself appears to replace gold which has been recovering significantly recently. We recommended the purchase of gold to a subscriber last December when it was at $1130 -- now trying to break the $1300 mark. Investors are desperate for solid good news reliable stocks beyond gold and several end up in Bitcoin now over $3,000 now slipped to $2,500 or thereabouts with the tech type stock deterioration.. Both citizens and investors are fearful of political and economic instability where traditional currencies appear questionable and Bitcoin's independence appears invulnerable to central banks.

Previously we said the economy as reflected on the NYSE index would not improve significantly until 2018. So-called 'animal spirits' bubble buyers have lost their hot wind since once again the Trump presidency has been sidelined by Congress vote against the first health bill and now the Comey fiasco that takes a detour going nowhere except to delay tax reduction legislation in which Trump officials have said would not see economic growth until 2018. The NYSE is stalled at the 21,000+ level where it was six months ago. We suggest that you be wary of CNBC stocks channel reports including president Trump claiming wonderful economic gains. U.S. government claims of low unemployment are belied by the lowest number of employed citizens in decades -- many in Obama's part-time jobs growth. Normally low unemployment levels mean wage increases but actual underlying market growth is not there to achieve this. Hence, market prices do not reflect the actual U.S. situation with its many tens of millions subsisting on food stamps. Our researched studies suggest we'll be waiting for real economic growth to occur only in 2018. October 2017 will give us a glimmer of good news for 2018.

If only we could provide happy summer news! More to come!