Bad News
Tuesday the DJIA closed below its 200-day moving average for the 2nd day in a row.
That's the first successive two-day close below this key moving average since March of 2016.
There was just one single-day close below the 200-day moving average since then, which was in June of 2016.
Bridgewater Associates, the largest hedge fund in the world, recently issued a warning in a leaked private message to clients, "2019 is setting up to be a dangerous period for the economy [but] for investors the danger is already here."
Bloomberg has warned that America is headed for "something economically worse than the Great Recession".
American citizens are swimming in a $13.6 trillion debt pool, $1.5 trillion in student loans, and mortgage debts worse than before the 2008 crash.
Citibank has cautioned, "it's eerily reminiscent of the mortgage crisis."
The tech IPO market is superheated. 75% of companies making initial public offerings of stock are losing money yet 80% of IPO's in 2018 are trading above their respective IPO price.
Such speculative froth hasn't been seen since the top of the dot-com mania in 2000.
In the fullness of time current market levels should prove to be extreme peaks in valuations.
All technical, fundamental, seasonal and logical indicators point to "lower lows" to come for stocks in the intermediate and long term, and this continues to look like the typical action attending a lasting market top while Monthly Momentum remains on pace to become negative this summer.
See this post from early April on Monthly Momentum.
Unless there's a massive rally during the rest of this week, Quarterly Momentum in the DJIA will turn downward for the first time since late 2014 which also happened just preceeding the four largest market drops of the past 20 years.
And in news of the ongoing Tesla exposé : The Future Of Tesla Hinges On This Gigantic Tent
NTSB Says Tesla Battery Reignited Twice After Fatal Florida Crash
That's the first successive two-day close below this key moving average since March of 2016.
There was just one single-day close below the 200-day moving average since then, which was in June of 2016.
Bridgewater Associates, the largest hedge fund in the world, recently issued a warning in a leaked private message to clients, "2019 is setting up to be a dangerous period for the economy [but] for investors the danger is already here."
Bloomberg has warned that America is headed for "something economically worse than the Great Recession".
American citizens are swimming in a $13.6 trillion debt pool, $1.5 trillion in student loans, and mortgage debts worse than before the 2008 crash.
Citibank has cautioned, "it's eerily reminiscent of the mortgage crisis."
The tech IPO market is superheated. 75% of companies making initial public offerings of stock are losing money yet 80% of IPO's in 2018 are trading above their respective IPO price.
Such speculative froth hasn't been seen since the top of the dot-com mania in 2000.
In the fullness of time current market levels should prove to be extreme peaks in valuations.
All technical, fundamental, seasonal and logical indicators point to "lower lows" to come for stocks in the intermediate and long term, and this continues to look like the typical action attending a lasting market top while Monthly Momentum remains on pace to become negative this summer.
See this post from early April on Monthly Momentum.
Unless there's a massive rally during the rest of this week, Quarterly Momentum in the DJIA will turn downward for the first time since late 2014 which also happened just preceeding the four largest market drops of the past 20 years.
And in news of the ongoing Tesla exposé : The Future Of Tesla Hinges On This Gigantic Tent
NTSB Says Tesla Battery Reignited Twice After Fatal Florida Crash
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posted by C. Guinness @ 3:30 AM
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