Oct 9 Our Market Cash Flow Index gave a sell signal Thursday October 9, 2014. Based on how far the market has already fallen we estimate this leg could fall anywhere from 5% to 20% more before any significant rally. If it falls a full 20% it actually has a better chance of stabilizing as it did in 2011. However, in any event the pattern is more like the beginning of the full blown bear market just after Obama was elected in which case it could be down another 50% six months from now.

American Economy

Oct 7

Consumer Credit Aug $13.5B down 50% from $26.0B in one month due to Obama administration incompetence in doing simple arithmetic.  That’s right; Obama wants you to believe people paid off half their credit card debt last month.  What a joke this administration has become.

Oct 8

MBA Mortgage Index 10/04  3.8% but still subpar though up from -0.2%--

Job openings "Jolts" continue to increase not because the economy is improving but because under Obama leftist education American students are increasingly ignorant and cannot qualify for the job openings.  American leftists seek everywhere to remove the history of the American Founding Fathers from school curriculums just because they were old white men.  That shows just how racist, gender biased, and age biased the stupid Obama leftists actually are.

Oct 9

Initial Claims 10/04 287K flat 287K --

Wholesale Inventories Aug +0.7% sharply high from 0.1%-- that means sales are down.  MSNBC/Pravda's Jim Cramer tonight said the stock market was tanking.

 

The Markets

Oct 9  We began shorting the market the second week of September when our market cash flow index gave a head and shoulder’s sell signal.   Today it broke through its trend line and gave an outright sell signal.  By some time in November we expect a year end rally to start and some optimism to follow.  We expect to cover all shorts within two weeks just to be safe.  But we expect to go short again by January if the other market price indices show weakness and cash continues to flow out of the stock markets.

ETF’s will be an economic junk bombshell of the coming Obama world economic  depression.  Almost every ETF was started after Obama took office.  To see what happens to a bullish ETF that went through a bear market just plot URE to 2007 back 1938 days to when it was started.  That is what will happen in a bear market to all the investors in new bullish ETF's after Obama was elected.

http://stockcharts.com/freecharts/perf.php?ure