Lower Highs... Much Lower Lows

We're now eight trading days since our signal went negative... and now the markets are taking a serious bath. There's gonna be a ton of money to be made on the other side of this one.

Dear Reader:

There haven’t been a lot of 2% days up or down in a while.

Today was the first of the year for the S&P 500.

And more are coming.

Here comes volatility.

And maybe… some capitulation soon?

Retail investors are getting crushed by this selloff after buying into a bull trap set on Friday.

This will be difficult as we head into a period of tariffs. Selling pressure has exceeded January 2022…

How bad is this? The market is now treating the Trump tariffs with the same readjustment on our daily readings that hit us in November 2021.

What happened then?

The Forward Guidance of Quantitative Tightening…

Not only is stimulus evaporating from the system, but now the underlying economic impact of tariffs is showing its face. You can look at the chart of November 2021 and figure out what happened next…

For anyone who thought that Trump was doing these tariffs for “negotiation purposes,” please self-identify.

I would like to sell you a bridge.

What’s Next

Lower highs and lower lows are now the …