by John Galt
October 24, 2018 22:20 ET
The screaming headlines everywhere from the New York Post to Zero Hedge says it all, the end of Western Civilization is upon us (again):
Thus, we are all going to die, because the usual suspects say so, right?
Uh, not in my opinion.
I have received emails, requests, concerned private messages, and bewilderment as to why I have not posted my infamous “Deathburger” theme for the markets this month.
That is simple:
What we are witnessing in the markets this month is nothing more than a market garden variety correction…so far.
Yeah, 70% plus of S&P 500 stocks are in bear markets technically speaking. The ETF market is in a very dangerous position as I warned ages ago would happen.
However, barring a Democrat Party sweep of the House and Senate on November 6th, the bleeding should stop very, very soon marked with a nasty, sharp bear market rally to new all time highs in the Dow Jones Industrial Average and an attempt to break 3,000 on the S&P 500.
Why you may ask?
Have you ever heard the phrase lack of commitment?
How many days of 10:1 volume up versus down have the markets had?
What about 10:1 days of up stocks versus down stocks?
Ok, that was a tad edgy. So let’s go with how many days have we had where total NYSE plus NASDAQ volume on a 2% plus move to the downside exceeded the ye olde standards of 10 billion shares plus?
That’s right. You lose sir. You lose ma’am. It has not happened.
Despite the doomer crew demanding we all cry in our Pampers and declare this vile, evil, artificial bull market over, it ain’t happening and I am not buying more water filters.
However, does this mean it will not crash?
Hell no. Look at 1987. But did the world end? No, not until the Republicans folded like the cheap wussies that they always have been. America is in uncharted territory ladies, hedge accordingly.