Where or where is the modern day Charles Merrill?
The memo issued by Charles Merrill to get out of debt was so dramatic, that on April 1, 1928, the New York Times actually published a story about this.
Oh does America cry for a reality check.
Thus when the past week’s market activity finally hit the masses with a reality slap in the face, it created a minor panic that perhaps, just maybe, the free money for bull crap investing is over.
Meanwhile, warnings are starting to appear, including warnings about liquidity contracting:
So if liquidity is contracting and risk reduction is the warning of the day, just how bad is the situation?
Let’s review some major indexes which closed last week on a weekly basis with warning everywhere when one can look.
First of all, the XLK, the SPDR Fund Technology ETF is warning with three crows and disaster ahead.
Meanwhile, small caps are getting smoked:
Meanwhile, the Dow Transport Theory might actually validate as Transports continue to warn of an impending major contraction.
2022 would sadly be an optimal outcome.
Meanwhile in the AI/Tech heavy NASDAQ Composite:
The potential for a major bloodbath is coming fast.
Prepare accordingly.
(Title picture via Grok AI)
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