Market Musings
The IBD market call remains "Uptrend Under
Pressure."
Rising inflation probably postpones any interest rate reduction
in the next six months. The real CPI is much higher than the
make-believe data from the BLS.
Full-time jobs are disappearing but part-time and government
jobs are not.
Are you not reminded of the "Emperor has no clothes!"
Iran's threat to take direct action against Israel probably
helped unsettle the market on Friday. Some analysts believe that
all the remaining Israeli hostages are dead.
The STI (Simple Timing Indicator) which is the number of "A" rated
stocks in the IBD database has fallen close to the red
line suggesting caution.
The Russian-Ukraine conflict continues to drag on. Many U.S.
politicians are becoming alarmed at the conflicts cost to U.S. finances.
Rebuilding our military weapon
stockpiles is going to be expensive and will take time.
In the meantime, the undocumented invasion continues at the
U.S. borders and it is becoming a major wakeup call in the
upcoming elections.
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.
Gold made another new all-time high this week.
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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