IT’S THE MONEY PRINTING STUPID!

Europe, the dollar, Isis, Ebola, George Bush, Geno Smith…there are tons of reasons pundits are spewing on why the market is getting in trouble. But so far, I haven’t seen one mention the money printing. Not one mentions the direct correlation between THE MONEY PRINTING AND THE STOCK MARKET. Tonight, we will recap all the characteristics that have showed up over the past few months that we told you always show up in advance of an important market top…which indeed has led to the recent nausea…but ladies and gentlemen…the last two times the Fed stopped printing money, the markets experienced a 17 and 20% correction respectively. Why should it be different this time? In fact, it was almost to the day that the market bottomed the last go round when Mr. Bubble unleashed his maniacal, market interfering, bubble creating $85 billion/month in printed money. This is on top of the manical 0% interest rate policy.

The thought process is simple. Absent Janet Yellen waking up, pulling off her mask to show that she is really Ben Bernanke…and decides to start printing again, we suspect there is more time and price as we move forward. Shorter-term action will be random but the big picture continues to worsen. Earning’s season is now straight ahead where a lot of jello will be moving on the plate.

More tonight here and on radio 6:06 pm at garyk.com if not in your city.