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The Stock Market Barfs up a Hairball But..

Friday was fun.

If you were in precious metals or cash and in your bomb shelter.

The truth is that Friday’s dramatic 1,000 point Dow decline was a low volume non-event. The equity markets reacted to the Chairman Powell’s speech like it was a big deal. The reality is the opposite as the Fed minions have been out for weeks telling everyone who would listen, which is no one, that they were going to raise rates to “whip inflation now.” From what era have I heard the term before, hmmmm…

At least the one consistent factor of now versus then is that the current junta in power is much more corrupt than Nixon ever was.

The markets sold off broadly but with typical low volume during the summer. By low volume I mean less than ten billion shares for the NYSE and NASDAQ combined on Friday. This means that outsized dramatic moves to the upside and downside could easily be dismissed. In fact this is more than precursor to what is about to hit in September.

The Dow did what the Dow Jones Industrial Average always does and created dramatic headlines for the local news propaganda readers:

30,000 will not hold in September, believe me on that one. Hell, they will be lucky if 25,000 holds by the end of September.

Meanwhile in the S&P 500, more of the same:

The downtrend channel is still intact, the downward momentum is intact, the volume is a giant nothingburger.

Same for the NASDAQ:

Much like Hunter Biden or Paul Pelosi, there is no conviction in any direction in this market since the June lows were hit.

Everyone who is important is on vacation. Markets are not liquidating in panic, nor rallying like FOMO or TINA. This is a dull, boring period with dramatic moves to the upside and downside and thus why the wealthy are parking their yachts off the Hamptons, or BVI, or Fiji while the average schmuck is trying to figure out how to pay their bills.

For the US and global economy as a whole, the bill starts coming due two days after Labor Day. There is an equity massacre on the horizon, and just as I warned a few weeks ago, even though the markets broke over what I thought the upside targets would be, there is a major problem on the horizon as the party is over.

Enjoy the last week of summer vacation kids, the idiots in D.C. return soon and the globalists are preparing to break what little hope remains in the spirit of the American investor.

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