Feb 8, 2018

This Just Shows How Quickly The Market Can Go Down

If you look at the five days from the high, in five trading days the Dow Jones futures lost about 13 percent of their value. In five days! Now that just shows you how quickly the market can go down, I mean, the next time it could lose even more even faster. (SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA))

Feb 6, 2018

Markets: The Problem With The Debt

Today if we have trillion dollar deficits not only is the Federal Reserve not monetizing any of it but the Federal Reserve is actually contributing to the problem by not rolling over the bonds that it holds as claiming it's going to shrink its balance sheet. Which means on top of the trillion dollars that the Treasury would need to sell to finance its deficits it's gonna have to sell extra Treasuries to repay the Fed what it's not rolling over. So this is impossible, this is a tidal wave of debt that's coming out of the market.

Related trading instruments: 10-Year U.S. Treasuries, iShares Barclays 20+ Year Treasury Bond ETF (TLT)

Stock Market: It's a Major Decline

We didn't have a black Monday like 1987 as it wasn't a 20 percent decline but it was the biggest point decline in the history of the stock market by a large magnitude. We were down 1,175 points and we were down 1,600 points at the intraday low. So this is the biggest point decline ever but in percentage terms it is in the top 20 (I think it was like number 14 or something) but it is a major decline and we rarely see declines this big. (SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ))

Stock Market: This Brings Back Vivid Memories Of 2008

Listening to all the so-called experts on financial TV reassuring investors that there is nothing to worry about, and that the fundamentals are sound, brings back vivid memories of 2008, as that's exactly what the same experts were saying just before the financial crisis. (SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY))

Feb 5, 2018

Stock Market: This Year Seems To Have A Lot In Common With 1987

Think about this, 1987 was the year that we had the stock market crash. Well, January was the best month for the US stock market since 1987 and the US Dollar just had its weakest January since 1987. So far this year seems to have a lot in common with 1987.

Stock Market Correction: The Start of Something Much Bigger

A three percent correction is pretty normal except we haven't had one in a long time and the question is is this the start of something more ominous or is this just a small correction and you know what I think there's a lot of evidence that it is the start of something much bigger part of the evidence is that nobody is concerned nobody is worried there's maximum complacency. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ))

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