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9 Ominous Signals Coming From The Financial Markets That We Have Not Seen In Years
Submitted by Michael Snyder via The Economic Collapse blog,
Is the stock market about to crash? Hopefully not, and there definitely have been quite a few "false alarms" over the past few years. But without a doubt we have been living through one of the greatest financial bubbles in U.S. history, and the markets are absolutely primed for a full-blown crash. That doesn't mean that one will happen now, but we are starting to see some ominous things happen in the financial world that we have not seen happen in a very long time.
So many of the same patterns that we witnessed just prior to the bursting of the dotcom bubble and just prior to the 2008 financial crisis are repeating themselves again. Hopefully we still have at least a little bit more time before stocks completely crash, because when this market does implode it is going to be a doozy.
The following are 9 ominous signals coming from the financial markets that we have not seen in years...
#1 By the time the markets closed on Monday, we had witnessed the biggest three day decline for U.S. stocks since 2011.
#2 On Monday, the S&P 500 moved below its 200 day moving average for the first time in about two years. The last time this happened after such an extended streak of success, the S&P 500 ended up declining by a total of 22 percent.
#3 This week the put-call ratio actually moved higher than it was at any point during the collapse of Lehman Brothers in 2008. This is an indication that there is a tremendous amount of fear on Wall Street right now.
#4 Everybody is watching the VIX at the moment. According to the Economic Policy Journal, the VIX has now risen to the highest level that it has been since the heart of the European debt crisis. This is another indicator that there is extraordinary fear on Wall Street...
US stock market volatility has jumped to the highest since the eurozone debt crisis, according to a closely watched index, the the CBOE Vix index of implied US share price volatility.
It jumped to 24.6 late on Monday and is up again this morning. On Thursday, it was as low as 15.
That's a very strong move, but things have been much worse. At height of the recent financial crisis – the Vix index peaked at 80.1 in November 2008.
Could we get there again? Yeah.
#5 The price of oil is crashing. This also happened in 2008 just before the financial crisis erupted. At this point, the price of oil is now the lowest that it has been in more than two years.
#6 As Chris Kimble has pointed out, the chart for the Dow has formed a "Doji Star topping pattern". We also saw this happen in 2007. Could this be an indication that we are on the verge of another stock market crash similar to what happened in 2008?
#7 Canadian stocks are actually doing even worse than U.S. stocks. At this point, Canadian stocks have already dropped more than 10 percent from the peak of the market.
#8 European stocks have also had a very rough month. For example, German stocks have already dropped about 10 percent since July, and there are growing concerns about the overall health of the German economy.
#9 The wealthy are hoarding cash and precious metals right now. In fact, one British news report stated that sales of gold bars to wealthy customers are up 243 percent so far this year.
So what comes next?
Some experts are saying that this is the perfect time to buy stocks at value prices. For example, USA Today published a story with the following headline on Tuesday: "Time to 'buy' the fear? One Wall Street pro says yes".
Other experts, however, believe that this could represent a major turning point for the financial markets.
Just consider what Abigail Doolittle recently told CNBC...
Technical strategist Abigail Doolittle is holding tight to her prediction of market doom ahead, asserting that a recent move in Wall Street's fear gauge is signaling the way.
Doolittle, founder of Peak Theories Research, has made headlines lately suggesting a market correction worse than anyone thinks is ahead. The long-term possibility, she has said, is a 60 percent collapse for the S&P 500.
In early August, Doolittle was warning both of a looming "super spike" in the CBOE Volatility Index as well as a "death cross" in the 10-year Treasury note. The former referenced a sharp move higher in the "VIX," while the latter used Wall Street lingo for an event that already occurred in which the fixed income benchmark saw its 50-day moving average cross below its 200-day trend line.
Both, she said, served as indicators for trouble ahead.
Are we about to witness a stock market crash and another major financial crisis?
Or is this just another "false alarm" that will soon fade?
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GOLD!
end of discussion..
physical silver
either or...
as long as its PHYSICAL
Cans of whiskey
"Doji Star topping pattern"
You made that up.
I'd rather be a top than a bottom,
but I realize it takes all kinds.
The past two weeks have been ominous indeed. I would have NOT guessed that stocks would be down so much. But, a few days ago I did note ominous signs of DEFLATION (US$, oil, Treasury rates, US ag products). And deflation is typical when a hyperinflation occurs afterward...
"Deflation First, Then Inflation?"
http://goo.gl/NRArHa
* * *
Beware...
Ammo, buy ammo in bulk.
"Lead Bullion" :)
Lead "bool-yawn". :-)
Meanwhile, CNBS is blaming Ebola for the market decline. Pathetic really. Fortunately, they only have 5 viewers left to laugh!!
phy gold.... rofl.... just lol.... NO.
.45 ACP.
HOLY SHIT NOT THE DOJI STAR! RUN FOR YOUR FUCKING LIVES!
Seriously, technical analysis is on a par with reading goat entrails or astrology, and has about an equal ability to predict anything.
Not really, are you familiar with pari-mutuel betting?
Let's just say for the sake of discussion that I'm not.....
Nice sense of humour ND.
id agree with you for the most part, but on longer time frames the patterns tend to be pretty reliable.
btw, looking at charts and doing naked price action could be conisdered technical analysis.
Not when there are no markets and all that remains is interventions (Unquote). Technical "Signals" are simply what Wall Street uses to run through Stops to squeeze the Hedge Funds.
I use Astrology in trading. Stupid not to once you've studied it.
Me too, man.
My starship just landed here on Earth a couple hours ago and right now I am consulting the stars.
Tomorrow I am going to visit the local coin shop and turn a bunch of pieces of paper into junk silver.
It's like magic, man.
Glass bottles, please Sir.
Why would you offend an innocent bourbon like that.
Maker's Mark, if you don't mind;)
Wine in a box. Only the finest will do
Wine snob. ;)
ASIA STOCKS CRATERING! A/O 8:50 PM
Japan -3.5% OZ -1.5%
Ominous enuf, yet for ya?
Quick, run for the exits!
How quickly can these markets lose 25% from their peaks and those people been long stocks and not yet sold will decide to hold because it can't....etc?
Hmmmmmm?
Again... Cans of whiskey
Barrels...
I sure picked a bad week to try to quit drinking.
the day when the " IMHO " became AMMO....
No, No.
Those little bottles of whiskey, brandy, whatever. Lots of them.
Really good for barter, like single silver dollars (which can be cut up to 'pieces of eight').
Think long term.
Keep the regular sized bottles for yourself - but no fucking cans.
before you try cutting your silver dollars into "pieces of eight" try the "pieces of ten": dimes.
There you go with those numbers again.
Part of why I like booze. Helps me forget I'm an accountant;)
knuks! Heilige Scheisse!
Yeesh, the best thing to do WAS to diversify!
Physical babes. In the bunker.
Its ebola for now, and its funny how we get overbought, and they need something like eboal to get us down,
Looks like the FEAR INDEX all time lows! WOW! SEE HERE==> http://bit.ly/1fMcakI
is all time low, and that means retail traders getting tricked in short, and will get their ass handed to them in NOV - DEC. Very eye opening!
What happens next is they get in for bargain prices and we rally to the moon. EVER HEARD OF AN XMAS RALLY! get ready for it. :-)
Ever heard a massive multi-bubble economy popping? Get ready for that!
Or Silver; the NCO's gold.
Along with beans, bullets and bandaids.
dont forget tobacco, sugar and coffee...
and anything they rationed in wartime...
then you trade up to silver, to gold....
Great call Cap'n. This isn't rocket science. What do people bitch about immediately if they can't get it. What does everyone really need.
Long Midol, and panty hose.
and condoms...
;)
no, why, every 9 month you have bloody merry, jelly fish soup and potentially a huge 3kg fried chicken.
Wow!
Believe it or not, bobby pins were big sellers in the depression...
+1 for knowing your history.
Just stocked the freezers with a steer, a hog, and a lamb a month ago...
I need to get the wife to buy extra salt, flour, sugar, and yeast, bleach and soap. Still have a good supply of seeds, but need more.
Almost forgot, toilet paper. Oh wait, that's what the fiat currency is for...
That's pretty good. But FRN's suck at any kind of absorbency task. They really are of very little use.
This article would've been helpful 10% ago.
What? You want someone else to tell you when to poop too?
It will be helpful 10% from now.
Empty paper promises.
I hate to be 'that guy', but all these articles about how this downturn seems to be 'the big one' almost guarantees a nice green tomorrow and Friday... Just sayin... Shorts probably going to get eaten alive (disclaimer- I have been long SPXS for a little while now, so I'll be one of the )
This is another "classic" from the Economic Collapse Blog...what else do they publish?
You would think a bounce may be in order but it might just be a slowdown in selling.
Listen Crook.
You know, I know, the markets tend to look into the future. That said, look at the panic here on The Hedge about eBola, and these are suppose to be the "SMART" folks from the USSA?
Markets will try to frontrun eBola until everyone shows Wall St how they can arrest and contain it.
Then the rally comes back.
I'm trying to figure out how to "listen" on a message board?
Give me a minute.
WallStreet and arrest have absolutely nothing to do with each other.
Ok. I figured out the listen button. Listen Bang, ebola is just the useful thief. The markets have been topping for 6 months. Got to have a reason to crash it. Ta daa.....
The rally may come return on the back of QE super turbo charge 170 Billion a month. It won't last. Be like TARP was, couple days of wet dreamin and then you wake up.
Crazy how addiction to the fed's hopium punch bowl works. Always need just a little bit more, and it packs less and less of a punch.
Listen.
Let's all enjoy a little titillation for the Bears, then buy that momentum as it swings around.
Rally Monkey needs his rally.
Aren't Canadian stocks heavily tied to Oil and Mineral extraction? The Oil price decline and the slow down in Germany and China ought to slam Canada and Australia hard! But, how much of their stock indexes are manipulation and money printing driven? Do they resemble US markets in that sense?
" Canadian stocks are actually doing even worse than U.S. stocks. At this point, Canadian stocks have already dropped more than 10 percent from the peak of the market."
You got me; I have no idea.
me neither...
enlighten us, comrade jack...
Yes, Jack. Lumber, Mining, Oil... probably Agriculture.
Canadians per capita are richer than US Citizens due to Mining & Oil.
If it wasn't for western Canada eastern Canada would be third world. I love Alberta in the summer but the winter tends to suck.
Plus way fewer mouths to feed, way fewer illegals to clog the welfare system and way fewer policemen needed to patrol the world for "democracy."
IF markets here have a PPT it is very well hidden. Canada is a baby con-joined twin to everything US $. Which is why the NZ buck and Aussie were up kinda. The loonie not so much.
Canadian markets are mostly commodities in %.
Just means when this house comes down that everything connected will tumble as well.
Canadian PM/gov. are the worst I have ever seen..ever. Think Ukaraine is a puppet? Take a look at our idiot Harper.
Oil is crashing because Rex Tillerson got pissed at being shown the door in Russia and called on his buddy Ali Al-Naimi to teach the Russians a lesson. Short-term. Fear not.
I think today you could see direct intervention by "them". I have no doubt it was to provide additional cover for some that are still getting out. Suffice to say that if 100 pt up moves on the Dow in 2 minutes doesnt scream to you to get your shit and leave, I don't know what it will take.
The girders are bending now.
It's hanging by a thread. PPT will not permit a major crash. If necessary, casinos will be shut down to prevent a melt down, and most paper assets in financial institutions would likely be worthless in the next imminent crisis. FEMA hollow point bullets, detention centers and coffins were just several obvious clues as to coming attractions, and I agree with those that think WWIII has already begun. A false flag Moslem ebola terrorist attack might serve as a backup plan to ensure a complete lockdown when the system collapses.
"Secret Maneuverings Of The Plunge Protection Team"
http://www.rense.com/general75/plunge.htm
"How September 11 Affected The U.S. Stock Market"
http://www.investopedia.com/financial-edge/0911/how-september-11-affecte...
Why will the PPT not permit a major crash? What do they give a shit for if the hollow points, detention camps and coffins are about to be unleashed. I would think a major crash would exacerbate the use of these items, not retard them?
My opinion is to crash it, create chaos, then instill NWO. But I could be wrong.
Too messy, perhaps, but we may find out soon....Uncharted territory.
I agree on the unchartered territory. Even on here, there's a ton of people that think the Fed's "still got this." I'm not so sure. I'm a conspiracy theorist at heart. I believe there are very few random acts in our "civilization" as we know it. By my own admission I "think" the Fed has the ability to "crash" it. Hell, they may not have a say in it other than what we saw today which was coordinated purchasing to keep it afloat and provide cover.
Probably many on here believe the Fed will still try to "got this" one more disasterously hyperinflationary time. We need deflation first - the boogeyman from which to save the children.
PPT will not allow a crash? You mean the same way it prevented the 2007-2008 crash?
this dump/pump is a Trojan Horse. What is the intent? wish I knew.
I rolled my dice today. I see a full pump Friday. Will it work to overome the uncontolled fear that is actually legitmate? I have no skin the actual pump game so who cares? I can say that as I got out.
You have more faith than I do. Someone pumped the market today to keep it from suicide but there are limits to doing that.
Is the stock market about to crash? Hopefully not.
Good one.
Edit: Please enjoy The Schadenfreude Song.
"Hopefully not" ?
Bullshit. It will do these central planners good. And maybe, just maybe it will wake the sheeple up. Afterall, there's been NOTHING to this economy but the financial markets because of the Fed.
Fuck em.
Yeah, that was a shitty job playing up to his audience.
A crash is all but guaranteed at some pt. Not a doubt in my mind.
When exactly? I wish I knew.
The market sure has taken a turn to the more exciting....big up and down days....commodities crashing...dollar way up....things are moving fast....to me that means a big adjustment is coming....I dont think the USA can grow on its own...to many of our companies are world companies now....and housing is not going to come back for awhile....public housing maybe...but not the 23 year old couple buying their first house....cars shuld slow down as the replacement of the older cars is over...if the CB QEs again..the market will go to the moon as that is the ONLY place to make a return now....
Uncle Benz funny money gone? No liquidity?
Just shows how much of a sham it all is.
correct to these metrics:
Dow 5000
prime rate: 5%-6%
cost of single family home 75,000
http://m.youtube.com/watch?v=jR5gDH4ty9U
Tick Tock, Tick tock..da da da da da da dah..
Nothing to see here.
BUY, BUY, BUY!
Nothing to see here.
BUY, BUY, BUY!
I'm sure there are additional threats yet to come:
Federal oversight on Airline Passengers can really stop commerce and consumption (TSA plus additional workers and medical personnel)
- Road Blocks
- TSA Checkpoints on Highways
- Quarantine Zones block deliveries, commerce, consumption
- Seaports, Airports, Bus Ports, Train Ports all can be hampered by a fuddling Obama Administration raising costs and holding back market activity
Of course no one can spend money like the Federal Government when there is a problem.
- Express Air shipping of medical Supplies
- Express Contracts for Inoculations or Vaccines
- Construction of Isolation Tents or Buildings
- New Federal Employment of TSA or Medical type people
- Leases of Office Space for new Federal Employment
And as others have been pointing out:
- Hemorrhagic Fever will cause people to quit jobs
- Pandemics will slow down port activities as workers quit
- Confusion will double in US Medical Centers
- Triage Strategies will have to be used in all Emergency and Port Operations
You forgot that power company employees will stay home and the electric and natural gas supplies will shut down.
Prepper city!
If they get sick then it is Game, Set, and Match.
Even if they stay home because of fear it is Game, Set and Match.
It is not limited to the Power Companies. What about the Oil Refineries?
Hmmm...Just where is Dallas? What industry provides Texas with revenues and the USA with a substantial supply of refined Petroleum Products?
Can it be...the Oil Industry?
It is a Geographical corrolary of Murphy's Law.
Anything that can happen will happen at the worst possible moment...(in the worst possible place?).
Game...Set...Match.
If you are going to go off grid...NOW is the time.
See today's truth
http://www.showrealhist.com/recDJIAtoRD.html
Interesting place...if the Fed does nothing we get kinda deflationary...if they act it is the ultimate admission of failure, they can QE and the markets may roar but the big boys will know that the end is near.
The dollar is fatally doomed. The USA is broke and surviving only with manipulation and the help of other countries buying (or at least rolling over) and not selling our paper. If a few countries look nervous it could cause a few others to reconsider their positions.
Oh... and GLD inventories are at lows not seen since 2010 (759 tons). 'When China doesn't get its gold it is all over'. (Rob Kirby)
Lots of near term possibilities and I have been wrong so many times in the past 4.5 years that I won't even say how I feel it will go but it is getting exciting. This will be big.
Ah come on, tell us how you think it will play out. It's just zerohedge. I suck at predicting too, but it doesn't stop me from being continually wrong.
Uh oh, King World News is saying the same
50-Year Veteran Predicted Stock Plunge Last Week: What Now?Today a 50-year market veteran, who last Thursday astonishingly predicted that a “cascade” of panic selling would engulf the stock market, warned King World News that this is still an extremely... Fleckenstein - Expect The Stock Market Collapse To Accelerate
50-year veteran should think about retiring.
Ebola will trump all Fed magic tricks - if this really gets rolling the markets will projectile defecate strawberry milkshakes all over Wall Street.
If you think about it, how many people who have been sitting on the sidelines are turning bullish.....right...now? None. We are just getting warmed up.
I was consulting today with a major player in asset allocation theory and the support staff were walking around like deer in headlights. You could see it in their faces and it was hilarious. They have been selling their reports for years now ( $25K - $50K a pop) and the mantra has been to go long no matter what and ride it out.
Management has been out for a long time now.
Some of the old guys with $1MM+ in their own 401k's were saying its a lot harder to hold tight when you see it happening rather than in theory (of what you sell to the institutional side and commute home on a train with a straight face because you think your job is safe).
Dear Muppets,
We are only selling everything because we want to give our valued clients an opportunity to buy this dip. We fully expect Dow 20k by end of this quarter.
Sincerely,
Goldman
Gonna be one hell of a dip...
You left out "..meanwhile we'll be shorting all your positions right into the toilet."
SP puts are gon be cookin'
Hopefully not? Why? You believe in Unicorns and rainbows and magic fat broker accounts from Pixie land? Oh Lord, please allow the crash and only then the sanity might creep in.
Amen.
I'm sick of all the shit-fer-brains, mealy mouths "hoping for the best".
WTF is wrong with people?
WE ARE SLAVES.
WE ARE OPPRESSED AT EVERY LEVEL.
WE ARE PSYCHOLOGICALLY TERRORIZED, AND LIED TO BY VIRTUALLY EVERY INSTITUTION THAT SHOULD SERVE US.
Why would ANYONE (other than a .1%er) want this paradigm to continue?
Do you have any suggestions? Are you willing to take individual action?
That is a problem. I think the best bet is to extract you/your family from the system as best as possible. Starve the beast so to speak. Anything more drastic and you'll be on the list.
20 years ago I was spoiling for a fight.
Now, I plan to drop out.
Because a lot of us believe that a whole lot of people are going to end up dying over this, that is why people hope for the best.
Hoping for the best is not preparing for the onslaught that is currently overwhelming us..
I will do more preparing and much less hoping...well...a lot less hoping...as smoking the hopium puts one into a zombiefied state.
You have a better chance of living, and maybe even prospering, while the zombies are wiped off of the face of the Earth...IF YOU ARE PREPARED.
As Jesus said...LET THE DEAD BURY THEIR DEAD.
Live free or die.
Shit this is an exciting time to be alive! Don't you just feel the electricity in the air?! Shizzil Bedrizzil!!
Fo real!!
I don't think the FED PPT will give up just yet.
They are too vested in their method of handling things. They will try them till the FED exists no more.
They've done a pretty fair job the past few sessions. The bottom hasn't dropped out.
Wouldn't it be a shame is their network was hacked and they were frozen out of action during a plunge?
I think this is all a ploy to keep rates down and keep QE4EVA going. Market sells off 20%+, Fed saves the day again, and we get to DOW 36,000 and the politicians can all say they are doing a good job and tell all of us to shut the fuck up.
These people on Wall St are living an alternate reality.
That could be their plan. I personally think the gig is up. We've been living off of the FRN perceived value for too long. We've done gotten weak and lazy. We worship asshole athletes, hold them to different standards and create fucking reality shows that aren't reality at all, just staged, edited bullshit sessions. I mean, fucking Honey boo boo, C'mon man!
We have absolutely no comprehension of patience any longer. Got to have it and pronto. The world is tired of our shit. Most likely what we are seeing is (and it's all related to the price of oil) a last ditch effort to screwdrive Russia into the ground via financial proxy war using price of oil. But we don't get it. Russia is not overstretched like we are. They'll eat dirt if they have too. And they don't have to keep the blood supply going to the empire's tentacles as do.
On a more personal level, We'll have people jump off buildings if DWTS is cancelled or if the NFL season is suspended. There's no way we can fight any longer. We are all too fat and lazy and to be quite honest there is no national pride anymore. Fight for what? Freedom, please.
Our army is mercenary by nature. By and large you only wind up there bc you are poor as dirt. You'll fight for your life but not for the country. That ship has sailed.
It's evey man for himself now. Can't you feel that?
Right now I will be marginally satisfied with WS'ers jumping out of tall buildings.
9 as in Saturnine?
We only thought there were white swans but then we found out that there are black swans too.
Q: So what does a black swan look like?
A: An ebola virus migrating all over the world from West Africa.
Many in here crying "what can we do?" If we all consume as little as possible for this final quarter - turn retail into a disaster for China crap sales, then the system will break. Every outsource country will feel the pain and the US will become stronger sending a clear signal to the world - but there will be prices increases as we build domestic production.
Who am I kidding. Expecting people to stop buying garbage and become more self-sufficient. The lazy and greedy have won. Glad I'm in the wilderness as the slaughter begins.
The lithium crystals can't hold out much longer, Captain. She's going to blow, Captain. And don't keep saying 'beam me up, Scotty' because she is really going to blow this time, Captain.
'We did it, you and me' Scotty in the Engineering Department aboard the USS Enterprise on the original series Star Trek.
"She's going to blow?" "I'll be right there!"
Scotty beam me up there is no intelligent live down here (at the FED)
Path of least resistance is down, until QE4 is leaked to select special elites.
OIL PRICE CRASH is already well covered at Zero Hedge arrangement with Saudi Arabia...not so much a sign as a cause. And Europe is in the permanent shitter until further notice. A brief revisiting of "reality" is not really "ominous" either. Can we do better than same old historical comparison that really has nothing to do with anything crap spewing? WHat would be interesting is something that describes the uniqueness of the moment which I doubt anyone is up to if it is unique. ANd half today's market puke somehow dissappeared as usual by the end of the day. Nothing to see here move along.
One wonders why among other things pretend financial analysis sometimes slants to Christian Apocalyptic? Probably cause writers have no useful thoughts or ideas I'm guessing.
Miss Doolittle is a long term bull relative to me.
I am at a seminar in Sochi Russia now, and went into a bank yesterday and saw that the Russian bank had a display of various Russian gold coins for customers to buy on display. Just like America once did.
...can someone tell me what scenario it will take for Gold to move back to $1800..?...
(short of zombie bite marks in the neck)
No one will care about the markets when Mother Nature comes to do her usual thing... doesn't anyone watch those cycles anymore? Guess that is another sign-of-the-times, right? They never see it coming, because no one put it on tv for them to watch, but by the time the MSM do that, it will be too late, just like in the movies. Cycles exist in nature in fractal form, everywhere you look, only most people have trouble looking beyond the end of their fiscal nose.
I don't buy it. An oil price drop accompanied the crash after oil prices skyrocketed. Unless China is crashing or Saudi Arabia is having a firesale before capitulating to ISIS, then low oil prices are bullish. There will be a crash, but it might get delayed what with the low oil prices.