Friday, October 10, 2014

BANG: US Markets Down Big Again

Here's today's damage:

DJIADow Jones Industrial Average16544.10
S&P 500S&P 500 Index1906.13
NASDAQNasdaq Composite Index4276.24

For the week, The S&P 500 is down 3.1 per cent to 1,906.13 while the Dow Jones Industrial Average is down 2.74 per cent to 16,544.10.

The technology-heavy Nasdaq Composite declined 4.45 per cent to 4,276.24 in the week.

It should be noted that at the start of the year, my method of calculating annualized 3-month M2NSA money supply growth, which I report on weekly in the EPJ Daily Alert, was as high as 9.1%. Just weeks ago, it was as low as 2.7%. Thus, there simply isn't the money flow into the system to support the capital structure that existed when money growth was at 9.1%.

But do note that money supply growth is very erratic under Yellen and since the break to 2.7%, as I report in the ALERT, there has been a slight uptick in growth.

In other words, brace yourself for a roller coaster ride and greater volatility.

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