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WARNING: We Could See a Market Crash Like 1987 After MLK Day

by | Jan 14, 2022 | Market Updates

I’ve got an incredibly bearish take on the market this time around… Every trader should heed my warning and pay close attention to what I’m about to present to you…

You see, I expect the stock market to crash in 2022. And it could be as soon as Tuesday — the day after Martin Luther King Jr. Day, which the market is closed for. 

I hate to be the bearer of bad news, but when certain things are hinting that the market might combust — and soon — it’s worth looking into and warning others about.

And when the charts are showing me dozens of red flags like this, I’d be an absolute fool to ignore the looming doomsday scenario…

The Stock Market Could Crash in 2022 — on Tuesday — Like it Did in 1987

I want to start my base case by looking at the chart of the S&P 500 on Oct. 19, 1987 — the infamous Black Monday.

Many traders may not have even been born when this happened, but this sudden and severe historical event is worth knowing. On that fateful day, investors witnessed U.S. markets fall more than 20%… in one trading sesssion.

It’s one of the worst crashes in U.S. history, a bloodbath of epic proportions.

Now, pay close attention to the chart below because it could unlock insight into what might come Tuesday…

Wednesday through Friday the week before Black Monday in 1987, bearish markets slumped by closing lower and lower — breaking moving averages.

Now take a look at what came when the markets opened after the weekend…

That morning, the market wasn’t down much from Friday’s close, but it dropped about 21% by the closing bell… Making it the worst single day crash in history. 

To keep this in context, let’s fast forward and take a look at what’s happening right now…

We’ve seen a couple of consecutive ugly drops — breaking below the 50-day moving average.

This past Friday was down at the open… And I suspect we’ll get a nice big drop coming off the long weekend.

So what does this all mean? Well, it does NOT mean you should sell all of your stocks. 

Watch the video below to learn more about why I suspect the stock market could crash in 2022 — as soon as Tuesday.

And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel

P.S. We’re now at the beginning of the year… and it doesn’t seem like volatility is likely to calm down.

That’s why I’ve found the best way to trade volatility… 

It’s not based on tracking a complicated list of stocks or using complex research methods… And it doesn’t involve trying to guess when volatility could show up in a single stock.

It’s based on a ticker built to bottle up all of the volatility in the markets in one place!

See How I Play Volatility

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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