Stock Market: Bear Market or Correction?

Looking at the fundamentals this looks so much more like a bear market. In fact, when you listen to the talking heads on CNBC they keep saying, "relax don't worry you know this is a correction the market is long overdue for correction, we haven't had a correction in a long time and corrections are normal and they're healthy." And all that is true but you know we also haven't had a bear market in a long time and bear markets happen,  bear markets are normal so how do they know that we're having now is not the long overdue bear market?

Massive Volatility Is Indicative Of A Trend Change

We're continuing massive volatility which is I said to me is indicative of a change of trend because we were so long in an uptrend with no volatility now all of a sudden you have this massive volatility.

Related trading instruments: 

• Select Sector Financial Select Sector SPDR ETF (XLF)
• SPDR S&P 500 Index ETF (SPY)
• iShares Russell 2000 Index ETF (IWM)
• Nasdaq 100 Index ETF (QQQ)

Markets: Nothing Is Going To Stop Rates From Rising

Bond yields rose anyway even a 1,000 points down in the Dow Jones Industrials average wasn't even enough to send treasury yields lower with the yield on the 10-year and the 30-year rising to new highs for the move.

We had a horrible 30-year bond auction again. Why anybody showed up is beyond me but obviously not as many people showed up as they thought.  The big drop in the Dow Jones Industrials didn't make interest rates go down it just kept them from going up even more but nothing is going to stop rates from rising.

Stock Market: Volatility Signals a Trend Change

When you have a trend and then all of a sudden you see lots of volatility generally that's a sign that the trend is changing and the trend has been up obviously stocks have been trending up for years and they've been trending up with minimal volatility. When all of a sudden you see massive volatility does that mean the trend is likely to continue? No! It's more likely a sign that the trend has come to an end. (SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY))

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))

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)