Tuesday, December 4, 2018

BREAKING: Dow Jones Closes Down 799 Points (3.10%)

U.S. stocks fell today, with all main indexes down more than 2%.

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 three years later, October 5, 2018. On the 5th, within days of the top, 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.
Here's the activity leading up to the sell short advisory and the activity since.

Now my focus in the EPJ Daily Alert is attempting to analyze the odds of a recession developing.

Subscribe today here and your subscription will start with today's issue where I discuss the odds of a recession and when one could start.


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