Market Musings
The IBD market call remains "Market in
Correction" although some investors are buying
the dip.
Are investors and particularly, large institutions finally
seeing that the "emperor has
no clothes."
The STI (Simple Timing Indicator) which is the number of "A"
rated stocks in the IBD database remains below the red
line suggesting caution.
Gold and silver continued to show strength this week.
Increasing office vacancies threaten the loan portfolios of
many banks and are a threat to stability of the financial world
both in the US and China.
Congress just authorized $90 billion it does not have to
continue support for actual and potential conflicts around the
world. But nothing for the U.S. immigration problem.
Stated US federal debt is approaching $35 trillion and the
actual GAAP US federal debt is probably over $230 trillion.
The Israeli/Iran (Gaza) mess seems to have paused for a moment
as student protests on liberal campuses continue to increase.
Rebuilding our military weapon
stockpiles is also going to be expensive and will take time.
Do not forget that about 25% of the stock markets value is held
by only 5 stocks ... danger ahead?
Have we reached the Minsky moment? The dollar's reserve
status is slipping away taking the U.S. economy towards a slippery
slope.
The possibility of the FED cutting rates seems to have gone up
in smoke with the latest economic data readout as flawed as they
are.
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.
Do not be surprised if the NASDAQ falls through 8,000, the SPX
to 2,500 and the
DJIA sees the 25,000 level.
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 04/12/2024 FlowChart, click
here.
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