Market Musings
It appears that we have another tulip market ... what with the
election over and crypto's disappearing.
The FED's interest game is beginning to devastate the wealth
producing sector. Major banks and insurance companies are facing a
significant loss on their bond portfolios.
Other significant downside factors are the downturn in housing, continued supply chain problems, diesel
shortages, a railway union strike, increasing pilot union demands and tech
company layoffs.
OPEC decided to reduce crude oil output beginning in November.
Crude prices are already headed higher. The Biden
administration has lost its leverage in the Middle East thanks to
its decision to reduce U.S. oil & gas production.
Shadow Government Statistics suggests the Biden Administration
economic
reports are incorrect. The third quarter GDP report and the
massaged October 2022 jobs report as presented by the
Biden administration was a result of smoke and mirror adjustments.
Not only the U.S. but the world is headed towards a
significant period of negative growth. 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.
Until Congress stops spending deficit dollars, the outlook is
bleak. While the U.S. dollar appears strong against the rest
of the world, it will be just a matter of time before its value
craters.
Do not be surprised if the NASDAQ falls through 8,000, the SPX
to 2,500 and the
DJIA sees the 25,000 level.
The Acc/Dis line remains above the red line. We are
seeing many stocks setting up but we are keeping very close stops
on any new positions.
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 11/11/14 FlowChart, click
here.
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