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2019 MARKET MELTDOWN: What The New Year Brings

2019 MARKET MELTDOWN: What The New Year Brings

If history is our guide, we are on track for a severe market meltdown in 2019.  While the U.S. broader indexes remained in record territory for most of 2018, December turned out to be a complete disaster for stocks.  So, even though the markets have reversed higher from their Christmas Eve lows, this is nothing more than a bear market rally.

It’s really that simple.  Thus, all the hype about “Fed Market Rigging” to push the markets up a record 1,000 points following the Christmas Eve massacre, becomes white noise as markets always correct higher after a massive selloff, with or without the Plunge Protection Team (PPT).  Furthermore, the notion put forth by members of the Alt-Media suggesting that the Fed rate hikes will cause another market crash, and wealth transfer makes no sense in an EROI Collapse (Energy Returned On Investment).

As the EROI of the oil industry falls even lower with the addition of oil sands and shale oil, there will come a time when the economy and market will disintegrate due to a lack of profitable net energy.  In this future net-energy-starved economy, most ASSETS will become LIABILITIES.  So, the lousy conspiracy that the Fed is using their “rate hike policy” for the “grand elite wealth transfer,” needs to be thrown in the waste-bin for good.

Folks, it’s time to stop focusing on lousy conspiracies and figure out what you are going to do when energy becomes a real problem.

Unfortunately, hype and conspiracies sell a lot of books and subscriptions because they are more exciting than facts, data, and information. It seems to me that a large number of the Alt-Media followers are being misled just as much as their Mainstream media counterparts.  However, they don’t realize it… LOL.

Okay, let’s get back to the 2019 Market Meltdown.

…click on the above link to read the rest of the article…

Investor’s Warning: ‘I’m Nervous. We’re Getting Closer To A MELTDOWN Scenario’

Investor’s Warning: ‘I’m Nervous. We’re Getting Closer To A MELTDOWN Scenario’

According to investor David Tice, who made a name for himself in running the Prudent Bear Fund before selling it to Federated Investors in 2008, the current market is dangerous.  Tice was quoted as saying he’s “nervous” because “we’re getting closer to a meltdown scenario.”

According to CNBC, Tice may be known as a “permabear”, but last December he said there was a 50 percent chance stocks would stage a 25 percent rally this year. So far in 2018, the S&P 500 and Dow are both up 8 and 5 percent, respectively. The Nasdaq has rallied about 15 percent.  But Tice did say: “Longer term, the market is going to suck.”

According to Tice, the struggling emerging markets could spark a contagion that could hit the United States. The MSCI Emerging Markets Index has lost more than 13 percent of its value this year as of Wednesday’s close. “You look at emerging markets. There’s a lot of trouble in emerging market currencies where we’ve broken to new lows,” Tice noted, as reported by CNBC.

“Everybody is into this market,” he said. “I’m worried about whether the economy could enter a recession faster than a lot of people think.” Tice also made a prediction about the inflation predicament based on the global picture. “Frankly, I think there’s fear of deflation picking up again,” he said. “I think that deflationary trend is likely to continue.” He also pointed to frothy sentiment in the market, which is often perceived as a warning signal to Wall Street.

Tice isn’t the only economic expert that sees trouble on the horizon. Peter Schiff has been warning of a financial bubble collapse for a few years now. And compounded with the nation’s rising debt and the American public’s problem with debt, the next “meltdown” could be disastrous.

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MARKET MELTDOWN CONTINUES: Gold & Silver Prices Begin To Disconnect

MARKET MELTDOWN CONTINUES: Gold & Silver Prices Begin To Disconnect

As the BLOOD continues to run on Wall Street, gold and silver were the few assets trading in the green today.  As I have mentioned in past articles and interviews, investors need to get used to this sort of trading activity.  Even though the Dow Jones Index ended off its lows of the day, it shed another 458 points while the Nasdaq declined 190 points and the S&P fell 60.

As the broader markets sold off, the gold price increased $15 while silver jumped by $0.25.  However, if we look at these markets during their peak of trading, the contrast is even more remarkable:

At the lows of the day, the Dow Jones Index fell 730 points or 3%, while the S&P 500 fell 3.2% and the Nasdaq declined by 3.8%.  Also, as I expected, the oil price fell along with the broader markets by dropping 2.7%.  If individuals believe the oil price will continue towards $100, due to supply and demand fundamentals put forth by some energy analysts, you may want to consider one of the largest Commercial Net Short positions in history.  Currently, the Commercial Net Short position is 738,000 contacts.  When the oil price was trading at a low of $30 at the beginning of 2016, the Commercial Net Short position was only 180,000 contracts.

Furthermore, if we agree that supply and demand forces are impacting the oil price to a certain degree, does anyone truly believe oil demand won’t fall when the stock market drops by 50+%???  I forecast that as market meltdown continues, the oil price will decline as oil demand falls faster than supply.

Now, when the markets were at their lows today, gold at its peak was up $20 while silver increased by $0.44.  Of course, this type of trading activity won’t happen all the time, and we could see a selloff in all assets some days.

…click on the above link to read the rest of the article…

Friday Miscellany News Brief

Friday Miscellany News Brief

Remembering the innocent victims who passed away on September 11, 2001 after a coordinated attack that struck the World Trade Center complex in New York City, and the Pentagon, and also the brave passengers and crew of United Airlines Flight 93 who put up a fight causing the plane to crash before being able to reach the target. Also remembrance and prayers for all of the firefights, police and other emergency personnel who lost their lives in the line of duty on that day.

Unfortunately, we have been lied to about what really happened and who was behind it, and those lies have been used to take our freedom away and to turn our country into the largest police spy state on earth. And TPTB just keep chipping, chipping, chipping away at any resemblance of freedom that we have left – all via the so called war on terrorism. But it’s all to keep us safe and to protect our freedoms, from being taken away by “the terrorists”… What?

The Missing Pages of the 9/11 Report : The pages “point a very strong finger at Saudi Arabia as the principal financier” of the 9/11 hijackers.

A Look at The Freedoms We’ve Lost : “Consider the state of our freedoms — set against a backdrop of government surveillance, militarized police, SWAT team raids, asset forfeiture, eminent domain, overcriminalization, armed surveillance drones, whole body scanners, stop and frisk searches, roving VIPR raids and the like.”

This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like : “If you already know what is coming and you are already prepared for it, you won’t be freaking out like the rest of the general population will be when things start really going crazy.”

Latest military lab concerns involve plague bacteria, deadly viruses : “The Pentagon’s most secure laboratories may have mislabeled, improperly stored and shipped samples of potentially infectious plague bacteria, which can cause several deadly forms of disease, USA TODAY has learned.”

…click on the above link to read the rest of the article…



This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like

This Is EXACTLY What The Early Phases Of A Market Meltdown Look Like

Stock Market Collapse Toilet Paper - Public DomainThere is so much confusion out there.  On the days when the Dow goes down by several hundred points, lots of people pat me on the back and tell me that I “nailed” my call for the second half of this year.  But on the days when the Dow goes up by several hundred points, I get lots of people contacting me and telling me that they are confused because they thought the stock market was supposed to go down.  Well, the truth is that if there is going to be a full-blown market meltdown, we would expect for there to be wildly dramatic swings in the market both up and down.  A perfect example of this is what we experienced during the financial crisis of 2008.  9 of the 20 largest single day declines in stock market history happened that year, but 9 of the 20 largest single day increases in stock market history also happened that year.  If we are moving into another great financial crisis, there should be massive ups and massive downs, and that is precisely what we are witnessing right now.

On Tuesday, the Dow surged several hundred points.  There was much celebrating in the mainstream media over this, but what they failed to realize was that this was another big red flag.  And we saw this volatility carry over into Wednesday.  The Dow was up 171 points early in the day before ending down 239 points.

By themselves, those two days don’t mean a whole lot.  The key is to look at them in context.  And in context, we have already witnessed the most dramatic stock market crash since the last financial crisis.

There will be more days when the stock market absolutely plummets and there will be more days when it absolutely soars.  No stock market crash in U.S. history has ever gone in just one direction continually.

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During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of Momentum

During Every Market Crash There Are Big Ups, Big Downs And Giant Waves Of MomentumTsunami Tidal Wave - Public DomainThis is exactly the type of market behavior that we would expect to see during the early stages of a major financial crisis.  In every major market downturn throughout history there were big ups, big downs and giant waves of momentum, and this time around will not be any different.  As I have explained repeatedly, markets tend to go up when things are calm, and they tend to go down when things get really choppy.  During a market meltdown, we fully expect to see days when the stock market absolutely soars.  Waves of panic selling are often followed by waves of panic buying.  As you will see below, six of the ten best single day gains for the Dow Jones Industrial Average happened during the financial crisis of 2008 and 2009.  So don’t be fooled for a moment by a very positive day for stocks like we are seeing on Tuesday.  It is all part of the dance.

At one point on Tuesday, the Dow was up over 400 points, and many of the talking heads on television were proclaiming that the stock market had “recovered”.  This is something that I predicted would happen yesterday

And if stocks go up tomorrow (which they probably should), all of those same “experts” will be proclaiming that the “correction” is over and that everything is now fine.

No, everything is not “fine” now.  The extreme volatility that we are witnessing just tells us that more trouble is coming.  Early on Tuesday the market was “burning up energy” as short-term investors sought to “buy the dip”.  But now that wave of panic buying is subsiding and the Dow is only up 240 points as I write this.

Overall, the Dow is still down more than 2,200 points from the peak of the market.  Even though I specifically warned that a market crash was coming, I didn’t expect the Dow to be down this far in late August.  Even after the “rally” we witnessed today, we are still way ahead of schedule.

…click on the above link to read the rest of the article…



It’s easy to deny a bubble but impossible to deny its implosion.

It’s easy to deny a bubble but impossible to deny its implosion.

We’re having the kind of day when the New York Stock Exchange felt compelled toannounce very encouragingly before markets opened that it would halt trading for 15 minutes if the S&P 500 drops 7% to 1,833 before 3:25 p.m. Once trading restarts and the index plunges 13% before 3:25 p.m., trading would be suspended for a second time. If the index plunges 20% at any point today, NYSE would shut the market entirely for the rest of the day.

Monday’s meltdown commenced in Japan.

A follow-on to Friday’s debacle. The Nikkei started out in the hole and dove from there, ending the day down 4.6%. This is a market where the central bank has a mega-QE program in place with an explicit policy to buy equities to inflate them. Yet, despite the furious efforts by the Bank of Japan’s trading desk, the Nikkei dropped to 18,541, down 11.5% since June, the lowest since February.

It was in reaction to a whiff of panic in China, triggered by a total loss of faith in the government’s and the central bank’s machinery designed to prop up the markets.

The Shanghai Composite Index opened down nearly 4% and went to heck from there, closing at 3,210, down 8.5%. It annihilated the entire phenomenal bubble gains this year.

The thing is, the government vowed to support the stock market when it hit the “policy bottom” of 3,500 to 3,600 points. Now that it crashed through what was nothing but a line in the sand, hopes have shifted down to a new line in the sand of 3,000 points.

In all Chinese stock markets, only 12 stocks rose, and 2,200 stocks hit their 10%-down limit.

…click on the above link to read the rest of the article…

Market Meltdown Means More Pain for Oil Producers

OilDerricks, cc Flickr Richard Masoner / Cyclelicious

Market Meltdown Means More Pain for Oil Producers

Supply-side downward price pressure has been the story of global energy prices over the past year: newfound supply from the Shale Revolution, OPEC’s gambit of market-share grabbing inundation, and new supply coming online from Iraq and soon Iran. The result was a plunge in oil prices from $115 in mid-June 2014 to below $70 by mid-December, and then to the low $40s as of last week.

Now we are seeing signs of a new economic crisis, one that began in Asia and spread to Europe and North America. China’s stock market meltdown has gathered pace and the recent yuan devaluation stands as a grim omen of not only tepid Chinese growth, but a lack of currency stability in the region should the crisis deepen. The 8% drop in Chinese exports in July is leading to a few uncomfortable questions of oversupply and a lack of global demand – systemic issues that transcend the sphere of domestic economic policy in China – and a looming currency war will only serve to make things worse.

The precise bottom of this newest sell-off in global equity markets is open to speculation, but in terms of oil prices it represents demand-side downward pressure and, depending on how things pan out, the potential for a whole lot more of it. WTI crude was down over 3% in pre-market trading to flirt with the sub-$39 range.

This is a scenario that is various degrees of terrifying for oil-producing economies, many of which have weathered the past eight months with a combination of fiscal austerity, asset sales, debt issuance, and burning through foreign reserves – basically holding on for dear life and hoping for a price rebound which now looks to have been pushed further into the future.


Olduvai IV: Courage
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Olduvai II: Exodus
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