WHAT AUSTERITY…AND…A MAJOR TOP IN PLACE?

The money quote:

“For nearly a decade, the middle class in this country has suffered from a needless and self-imposed austerity, limiting investment of all the things that create good-paying jobs and improve the working conditions of Americans, improve the lives of Americans. This spending bill, this spending agreement brings that era of austerity to an unceremonious end and represents one of the most significant investments in the middle class in decades!”

Ladies and gents, look up the words FLIM FLAM MAN. I give you the words of Chuck Schumer. A FLIM FLAM MAN is defined as “a trick or deception, especially a swindle or confidence game involving skillful persuasion or clever manipulation of the victim.” In other words, (we do not have to be politically correct, the man is a liar.) This man has been front and center for years running up government spending, running up the size of government and running up our debt and deficits. In 2014, federal spending was $3.5 trillion. Last year, it was over $3.9 trillion. Next year, it is going to be $4.4 trillion. In 2023, it is slated to be $5.1 trillion AND THAT’S AUSTERITY? Is it any wonder where we are with our debt and deficits? The con game continues.

There is a damn good chance the next part of a major top is being put in place. We have been telling you things have been deteriorating again but not until the financials and the glamour growth/tech names gag will the market gag. They gagged.

Today, the financials broke important support. Today, the nasdaq and the ndx broke important support and to put it mildly, the ice got thinner. The dow and s&p already moved below support we gave you just yesterday. The nasdaq/ndx are still above but can come down in a hurry. Regardless, everything is turning down again and would not argue with price. Again, markets will drop even though all are saying it can’t because the economy is strong and earnings are strong. We guarantee you it can and right now, it is. As we scanned a ton of stuff while our flight to NYC is delayed again (what else is new), all we found were more and more names breaking below support/moving averages…and as we have been telling you, the market (except for the nasdaq,ndx and financials) was already very weak. Foreign markets are uglier. Seeing real ugly in industrials, healthcare, metals and mining and steel. Yes steel! Thought them tariffs was supposed to help!

We never know how exactly something plays out but so far everything we are seeing reminds us of every big top we have studied and experienced in the past. At the very least, a little defense remains your best offense. Will be watching next support areas closely.