Wednesday, October 24, 2018

Dow Closes Down 608 Points!

Today's stock market selloff has erased year-to-date gains for the S&P 500 and the Dow Jones Industrial Average, while the Nasdaq Composite finished in correction territory. The Dow fell 608 . points, or 2.4% The S&P 500  fell -3.09% The Nasdaq COMP, declined 4.4%, leaving it 12.6% below its August high.

While Austrian-lites panicked about the stock market in late 2015 when the Fed raised interest rates for the first time since the 2008 financial crisis, I stayed bullish until October 5, 2018. On the 5th I wrote in the EPJ Daily Alert (red highlight in original):

The odds of the economy and stock market chugging along without a significant break are very low.
Money supply growth just does not appear strong enough to sustain the stock market strength and general overall strong economic numbers.

The foundational current weakness in the stock market is likely the current sluggish money supply growth. It suggests at a minimum a very dangerous period ahead for the general stock market....with the present stock market weakness in a sluggish money supply environment, I expect it to get much more serious on the downside.
I am now advising short-term aggressive risk-oriented traders to go short the general market.

In today's  Alert, I just put out my first warning about another major sector of the economy. Subscribe today and your subscription will start with that warning.

There are four ways to subscribe to the EPJ Daily ALERT: Details here.

Past spectacular calls do not  guarantee future spectacular calls.


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