Some Sunday Market Thoughts-Growth Dead For Now

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I will have the weekly video up tomorrow.  Right now the market is getting de-fanged as momentum and growth stocks cant get sold fast enough.  I easily looked at at least 600-700 charts this weekend and the only ones that show upticks are the ones getting dead cat bounces.

China will be closed this week, so that could take some pressure off the market.  Hard to screw up when your closed. Over the weekend, The People’s Bank of China used up $100 billion defending the yaun, lowering the country’s reserves to $3.23 trillion.  But if China sees no end in sight to the reserve destruction, breaching $3 trillion could be a psychological spur for policy makers to reassess the strategy of keeping the yuan propped up.

It would be interesting to see how the China market would react to this news, but we”ll have to wait a week.  I stiil say the Yuan gets crushed and it ends in tears, but it will take a while.

In other cheery news over the weekend, CCC rated corporate bond debt hit 20% yield. Last time this happened was the 2008-2009 crash/recession.

Also corporate dividend cuts have just surpassed 2008 levels. We are definitely seeing cracks in the market and the economy’s armor here, so my guard here is still way up and I feel no need to rush into longs. You don’t have to necessarily be short, but long is wrong and high cash positions is highly recommended.

Global futures are slightly green right now.

Go Denver

See you in the morning.

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