Market Musings
The IBD market call changed to "Market in
Correction" today.
Are investors and particularly, large institutions finally
seeing that the "emperor has
no clothes."
The STI (Simple Timing Indicator) which is the number of "A" rated
stocks in the IBD database fell below the red
line suggesting caution.
Gold and silver continued to show strength this week despite
short-selling of paper gold and silver dominating trading.
The Russian-Ukraine conflict continues to drag on.
The Israeli/Iran mess seems to have paused for a moment.
However, the Uni-Party is moving ahead with an $90-billion aid package for Ukraine, Israel and Taiwan ... paying for it with more
debt.
Rebuilding our military weapon
stockpiles is also going to be expensive and will take time.
In the meantime, the undocumented invasion continues at the
U.S. borders and it is becoming a major wakeup call in the
upcoming elections.
Do not forget that about 25% of the stock markets value is held
by only 5 stocks ... danger ahead?
Have we reached the Minsky moment? The dollar's reserve
status is slipping away taking the U.S. economy towards a slippery
slope.
The possibility of the FED cutting rates seems to have gone up
in smoke with the latest economic data readout as flawed as they
are.
Dare I say that it will be
at least another year of dismal U.S. and world economic growth.
And that is if we don't enter a major military war with either
Russia or China.
Do not be surprised if the NASDAQ falls through 8,000, the SPX
to 2,500 and the
DJIA sees the 25,000 level.
Remember -- "Only purchasing power counts!"
It is difficult to find long-term trading opportunities with
the future so uncertain.
By any reasonable measure, this market is
dangerous.
Be careful ....
To review the 04/12/2024 FlowChart, click
here.
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