THE MARKET TOLD YOU SO!

We were really going to take the day off today from writing to you…but after the fake employment number (just check out the participation rate), we figured we’d let you know our thoughts.

We told you the market was forecasting a big slowdown or a recession. We did not have to predict this. The market did. When you have the Transports crumble while oil prices crash, it is telling you a slowdown is coming. When the semiconductors crash, it is telling you a slowdown is coming. When high yields are crumbling, it is telling you a slowdown is coming. When markets around the globe crumble, it is telling you everything you need to know about what the market thinks of the future…and that is a slower economy or a downright recession. And here is some news for you, the market is a lot smarter than all of us.

As we have told you, there is absolutely zero chance of the data dependant(which means they know nothing until something happens) Fed to raise rates. We have also told you their next move would not be a hike but odds favored another round of money printing. But as of this second, markets are no longer paying attention.

We actually thought after the close yesterday that the markets could bounce in the near term off of the double bottom lows. Maybe they still hold but pre-market not thrilling. Remember, a break below the August lows will invite more selling and a continued de-leveraging of margin..which will certainly not help..

Lastly, we had to fit this in.

Our president came out yesterday blasting this country on gun control. This came off of a tragedy in Oregon. Last we looked, our president never mentions this while so many are gunned down every weekend on the streets of Chicago. Last we looked, our president had two years of unfettered power where he could have enacted anything he wanted. In fact, the White House received proposals and turned them down. Of course, there was a re-election ahead. Last we looked, it looks like again, our president takes any event and uses any tragedy to score points. If you want to do something Mr. President…