Monday August 5, 2024
We have discussed an overbought market all year. We claimed that markets topped July 11, 2024, some later or earlier. That seems confirmed now.
today was a 90% down day with 9 of ten stocks closing lower.Richard Russell used to say those days are followed by a couple of weak rebounds, maybe maybe not.
Maybe not at this is a five of five conclusion dating back to 209, 2002, 1987, 1982,1948, 1932. There is few to no financial planners around who remember the sideways market of 1974-1982. I The 50% drop from 1973-74 is starting now.
And it is world wide. Japan was down 12.4% today after being touted for its recovery.
My chart function is not working but I will describe. France dropped 1.4%. USA DJIA down 2.6%.
NDX down 2.96% down 3,000 points form 20,500 to 17,500 since July 11.
T bill 3 month rates are dropping fast no 5.198%. The FED looks ridiculous and will really have to catch up cutting in Sept. Companies are laying off employees, who about the FED doing the same?
Gold and silver dropped intra day but came back during the day. Gold high 25, low 2403, close 2444.
Silver high 28.82 low 26.59 close 27.21
Both should be near lows, this has required lots of patience but the bounce back today is way more than stocks did.
Crude came off its low of 71.67 to closer at 72.94.
Bottom line, whatever happens to stocks in the next few days far lower numbers lie ahead.
Bond prices will continue to rally.
Gold and silver eventually rally.
Crude oil, well let's see.
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