Nasdaq: A Key Reversal

We had a beat, a stronger than expected jobs number and the Dow Jones Industrials Index closed off almost 300 points.

The weakest technically was the Nasdaq. The Nasdaq traded above 5,0000 for the first time in 15 years on Monday, it closed above 5,000 too. But it closed not only down for the week, but it was an outside week. We took out last week`s high and closed below last week`s low. Now, from a technical pattern, that is called a key reversal and its a very bearish sign for that index.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Early Signs Of A U.S. Recession?

Probably the most bearish of the numbers we got was Factory Orders, which fell for the 6th consecutive months. This is rare. The last two times that we had Factory Orders fall 6 months in a row, the U.S. Economy has already in recession. It happened in 2008 and happened in 2001.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The U.S. Economy Has Never Been In Worse Shape

I think the U.S. Economy has never been in worse shape than it is now. I think the situation is far more dire now than it was 15 years ago. And the only thing is, its so bad that we might not have the collapse that we had because the central bank is so afraid of pricking this bubble that it does`t. We don`t raise interest rates like the Federal Reserve is promising. If the Fed did raise interest rates the markets would collapse. But they may so fearful of that, that they are not going to do it.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.