• 13 hours Legacy Automakers See Massive Spike In Sales
  • 2 days Tesla's Biggest Competitor Is Going Cobalt-Free
  • 2 days Stocks That Could Benefit From Biden’s $2.5 Trillion Infrastructure Plan
  • 4 days The Mafia Has Expanded Its Influencer Under COVID-19
  • 5 days How Fintech Will Get Skeptics Into Crypto
  • 6 days Monday Markets Rise On Stellar Jobs Report
  • 9 days Not Even Bribery Allegations Can Crush Cannabis Boom
  • 14 days Canada May Become Leader In Booming Battery Market
  • 15 days Nearly 42% Of All Amazon Reviews Are Fake
  • 16 days Kidnapping Is Big Business In Nigeria
  • 16 days COVID Fraud Amounts To Nearly $570M
  • 19 days Art Is Now An Algorithm
  • 20 days TikTok Threatens America, Tesla Threatens China
  • 20 days Small-Cap Energy Sectors With Big Upside
  • 24 days Coinbase Valued At $68 Billion Ahead Of IPO
  • 26 days 3 Stocks To Watch Amid AstraZeneca Covid Vaccine Snafu
  • 27 days Get Ready For First Tax Hike Since 1993
  • 30 days Tech Majors Bet Big On Clean Energy
  • 31 days Is This The Next Amazon Of Used Cars?
  • 32 days First Ever Tweet Attracts $2.5M Bid On Blockchain Platform
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

Red Sky in the Morning.......Sailors Warning

We know how to interpret the signs in the sky, do we know how to interpret the signs in the markets?

With as few words as possible here is what I see. (I have no position in any market to sway my emotions)

1. Major disconnect between markets
   a. Dow Jones Industrials & Dow Jones Transports
   b. S&P 500 & above two
   c. US markets & UK markets
2. Credit spreads widening and about to explode
3. Housing markets topping out in many places
   a. UK topped
   b. Australia topped
   c. Holland topped (years ago!)
   d. US topping
   e. S. Africa topping
4. Year on year rate of change in money supply in largest economies slowing
5. Consumer sales growth slowing / falling (US, UK & Europe)
6. Inverted / Flat yield curves in major economies
7. Banking Sector profits under threat
8. Stock indexes in topping formations
   a. Dow Jones Industrials - topped
   b. Dow Jones Transports - topped and falling fast
   c. S&P 500 - topping
   d. Nasdaq - topping
   e. FTSE 100 - topping
   f. European markets - topped / topping
9. Major sectors within markets topping
   a. Banking sector US & UK - topped
   b. Housing sector in US - topping / topped - see charts of Fannie Mae, Major US home builders
10. Commodity markets - topped
   a. Oil - last sector within commodities appears to have topped with Katrina
11. Gold - topping
12. Silver - topped

I could go on. Please look at the charts for the markets / stocks mentioned. Consider the overwhelming bullishness that still exists for all types of investments. We are still in an investment mania!!

Hedge funds are chasing every up tick in every market. One of these big players WILL blow up in the coming months.

Listen to market commentators who have been through a real bear before. (Robert Prechter - Elliott Wave International, Richard Russell - Dow Theory letters*, Kennedy Gammage - Richland Report and others). * Russell's recent comments on potential upside breakout for S&P 500 relate to the secondary trend under Dow Theory, that is secondary to the Primary which is still DOWN "Things are never different this time". The market is at best a large crowd of humans and human nature DOES NOT CHANGE

Consider the social scene - look around you are people more or less optimistic than they were in 1999? Blind optimism has been replaced by blind disregard for the very evident danger. People are getting angry, defensive and is some cases desperate.

Every major market is telling us that the all night party is coming to an end. Dawn is breaking with a bright red sky. Heed the Warning.

Back to homepage

Leave a comment

Leave a comment