​Crash No Longer Imminent According to NIRP Crash Indicator Signal Change

Michael Markowski  |

The NIRP Crash Indicator’s signal changed from its pre-crash or crash imminent Orange to its Yellow cautionary or crash less imminent reading. The signal had gone from Yellow to Orange prior to the U.S. stock market’s opening on April 28. During the eight day period that the indicator’s reading was Orange ended on May 9, 2016, the S&P 500 went from 2095.15 to 2058.69, a decline of 1.7%.

The signal’s change from Orange to Yellow was because the exchange rates of the Yen versus both the euro and the US dollar had stabilized during the week ended May 6, 2016. Additionally, both the euro and the dollar appreciated by more than 1.1% versus the yen on Monday May 9, 2016.

The NIRP crash signals are published and freely available each day at www.dynastywealth.com:

  • Red — full crash
  • Orange — pre-crash
  • Yellow — caution
  • Green — clear

For the NIPR Crash indicator to decrease from the crash imminent Orange or a crash Red reading to Yellow requires that the exchange rate between the yen and dollar be stable for an extended period of time or that the dollar advance significantly versus the yen. An increase in the indicator’s reading from Yellow to Orange requires a steady advance or a significant one day advance for the yen versus the dollar.

To have a better understanding of why the exchange rate volatility between the yen and the dollar is the primary metric powering the NIRP Crash Indicator the video entitled “Yen Volatility Causes Market Crashes” is highly recommended.

The following reports and articles covering the NRIP Crash Indicator and the yen are also recommended:

Dynasty Wealth, February 26, 2016, Acclaimed Analyst Produces “NIRP Crash Indicator”

Equities.com, April 1, 2016, No April Fool’s Joke: NIRP Crash Indicator Elevated to Pre-Crash Warning

Equities.com, April 9, 2016, Yen Volatility Puts Market on Precipice of Crash

Equities.com, April 29, 2016, NIRP Crash Indicator Back to Pre-Crash Level

Equities.com, May 1, 2016, April 2016’s Signals Confirm Reliability of NIRP Crash Indicator

The impetus for the development of the NIRP Crash Indicator was from the research conducted on negative rates and the extreme volatility that they are causing for the capital markets. See Japan’s NIRP Increases Global Market-Crash Probability”, February 26, 2016 report.

Based on my continuing research coverage of the spreading negative rates and the devastating effect that they can have on the global banking system the probability is high that the major global stock indices including the S&P 500 will begin a significant decline by 2018 at the latest. My April 15, 2016 article entitled, "Ridding World of Negative Rates May Require Meltdown of Income-Producing Assets, provides details about the potential mark down of the S&P 500 could likely be in stages. I highly recommend my 9 minute 34 second vided interview by SCN’s Jane King entitled "Why Negative Rates could send the S&P 500 to 925" be viewed. In the video I explain the math behind why the S&P 500’s declining to below 1000 may be the only remedy to eliminate the negative rates.

The following are my other reports that I have produced on the rapidly spreading negative interest rates:

April 23, 2016 Why Market Could Spike to All-Time Highs Before it Crashes

April 15, 2016 Ridding World of Negative Rates May Require Meltdown of Income-Producing Assets

April 11, 2016 Yen Volatility Increases Probability of a Crash Happening Sooner

April 11, 2016 Negative Rates Pose Grave Risks to Banks (originally published Mar 12, 2016)

Mar 05, 2016 Cash Hoarding has Thrust Negative Rates into Lead Role for Next Crash

Mar 02, 2016 Dynasty Wealth Founder discusses NIRPs in Interview by SCN's Jane King

Feb 26, 2016 Black Swan Pre-Cash Investing Strategy Recommended (excerpt from 02/26/16 report

Feb 26, 2016 Japan's NIRP Increases Global Market-Crash Probability

Dynasty Wealth LLC, the “boutique” research firm that I founded evolved from research that I had conducted on the ongoing transformation from the industrial economy to the digital economy. My findings enabled me to conclude that the period from 2015 through 2020 would be the best ever for investors to generate dynasty wealth returns of 10- to 100-times from utilizing a truly diversified portfolio. The video entitled, “Digital disruptor companies have the potential to get $10 billion valuations quickly,” below provides details about how investing into a portfolio of digital disruptors enable investors to create dynasty wealth. It discusses digital disruptor UBER. A $10,000 investment into UBER in 2010 was valued for $105 million in 2015. I recently discovered a digital disruptor in the $593 billion U.S. grocery industry and my research recommendation covering it is available at www.michaelmarkowski.net.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


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