Harry Dent: ‘major reversal in many markets and a possible top in the bear market rally in stocks’

by | Oct 13, 2009 | Forecasting, Harry Dent

HS Dent Forecast Update distributed Monday, October 12, 2009:

“…short term cycles tend to point down into November and then back up into late December or so. We are at a critical point here. Most stock markets are retesting the 9/23 highs. Gold is retesting recent highs and oil is retesting highs back to August. The dollar made a slight new low on Thursday and may have bottomed after a long trend down, but its rally hasn’t followed through yet. We may be seeing a major reversal in many markets and a possible top in the bear market rally in stocks. However, our technical indicators are not that overbought here and Lowrys analysis of buying and selling pressure does not argue for a top yet.”

SHTFplan Comments:

Harry Dent provides two possible scenarios that may play out over the coming days/weeks/months.

  1. In scenario #1 we may see a minor correction in markets sometime in November, but overall, markets may continue “edging up”. According to Dent, there is a short-term cycle low possible in late January 2010. Prior to that short term cycle kicking in, the Dow Jones could reach the area of 11,300 between December and January.
  2. The other scenario is the more bearish one. We could see a strong correction in markets from the end of October into late November, then a bounce. Then a “larger downtrend” starting in January.

The overall trend for 2010 remains DOWN, as deflation should take hold once investors realize that the economy is not recovering as advertised.

This downward trend falls in line with the broader forecasts from our favorite contrarians, discussed in CAUTION: Crash/Collapse Dead Ahead Say Faber, Rogers, Dent and Celente.

Click here to learn more about HS Dent Monthly Forecasts…

Inflation is Running at 40-Year Highs!

Negative interest rates are taxing savers, creating food shortages, and making life miserable in the United States!

There's little time left before the REAL DISASTER occurs!

Download the Ultimate Reset Guide Now!

    Related Articles



    Commenting Policy:

    Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

    This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.