IT’S A FREAKING BEAR MARKET! PART 2!

“IT’S A FREAKING BEAR MARKET! PART 2!
By Gary Kaltbaum-January 7,2015
garyk.com
@GaryKaltbaum
Fox News Business Contributor

We disagree with the many who are saying this morning that this is just a correction in a bull market. We disagree with the many who said this all started this week. We disagree with the many that say the economy is fine. We believe and reported to you that this has again been another long, topping out process which started in the summer of 2014 when commodities topped leading to everything else topping through 2015…which led to the narrowness we were worried about…which led to what you are seeing now. All the market needed was something to light the fuse and give the rest of the market the excuse to crater.

We are so very worried that the same people who caused the bubbles are still in power and continue to make the maniacal moves that put markets into a position like this. Bullish markets should not last 7 years but central banks interfered. Bullish markets should not need continued central bank intervention. Bullish markets should not need selling restrictions. All lead to what we are seeing…and that is everyone trying to get through the door at once.

What you are seeing is the definition of a bear market and risk aversion. What you are seeing is the definition of a market that is telegraphing serious economic trouble ahead. What you see is the definition of a market that is now technically broken both here and around the globe. And we are the best of the worst.

For the future, when you see high yield markets cratering, when you see credit spreads blowing out, when you see transports at yearly lows, when you see commodities crashing, when you see the NYSE, small caps and mid caps croaking, when you see retail at yearly lows, when you see food,drugs,beverages,tobacco,household products, dollar store retailers and water utilities holding up…SOMETHING IS WRONG!

We remain astonished that the Fed waits years and years to raise rates and then finally raises into everything we said in the last paragraph. Data dependant anyone? But we don’t put this on Yellen as much as we put this on Bernanke. He was the pied piper of easy money leading all the lemmings down this road. And he gets $250,000/speech.

We are in hopes that central banks back away but that will never happen. They believe they know what they are doing when they really do not have a clue. The bad guys continue to run the show. All refuse to let free markets and free economies be free. All their moves were to suppress interest rates while suppressing selling in stock markets. The dam has finally been broke. All in all. There has been too much government involvement and those people in government shouldn’t be running a lemonade stand let alone markets and economies. Curbs and restrictions on stock sales just create more panic and more selling.

Unfortunately, Yellen will intervene. There will be planted talk about rolling back the rate hike and talk of QE4 or even negative rates but I am afraid markets may not care what they do any more. We were laughing when a Fedhead came out yesterday to say there would be 4 or 5 rate hikes this year.

And we haven’t even talked about the potential for currency wars as China now devalues …which flies in the face of what they said a couple of weeks back when they stated everything was fine. Their newly found tolerance for a lower currency tells you they know how bad things are over there.
Technically, the mess continues to get messier. Support levels we gave you have been taken out like a hot knife through butter. Markets are now beyond oversold and stretched to the downside on a near-term basis. We suspect any day now to see some vicious rallying/bouncing but that will not change the big picture. Keep in mind, in bear markets, oversold can get more oversold.