Are Global Woes Finally Catching Up To The US Markets?

Daily Chart August 12 2015

8/12/2015 – A positive day with the Dow Jones up 0 points (0.00%) and the Nasdaq up 8 points (0.15%)

If you haven’t noticed, China’s dual Yuan devaluation has sent the Dow down 500 points over the last two days. Although half of this down move has been retraced thus far. It is important to understand that China is doing this our to necessity. And it’s not only China. We are facing a similar setup worldwide. Consider the following.

iShares MSCI Emerging Markets (EEM) which is down 19 percent from last summer’s highs.
DB Commodities Tracking Index Fund (DBC), which is down 43 percent from last summer’s highs
Factory orders here have expanded on a monthly basis only twice in the last 11 months. Excluding transportation, factory orders collapsed at a 7.5 percent annual rate in July, the worst since the maw of recession in 2009.
In Japan, despite a near 40 percent drop in the yen, industrial production is growing at just a 2 percent annual rate.
In China, the PMI manufacturing activity index dropped to 47.8 in July, down from 49.4 in June and below the neutral 50.0 mark for the fifth month in a row. Chinese factories are suffering their deepest contraction in activity since July 2013.
In China, the PMI manufacturing activity index dropped to 47.8 in July, down from 49.4 in June and below the neutral 50.0 mark for the fifth month in a row. Chinese factories are suffering their deepest contraction in activity since July 2013.
Etc….

Can the US markets recover and/or avoid worldwide/commodity collapse?

I don’t see how. What you have to understand is this. Most of the recovery off of 2009 bottom has been driven by zero interest rates, speculation, QE and stimulus. And now that it’s gone, nothing can prevent further collapse. China might be the first to pull the trigger in this currency war, but it is just a matter of time now before the FED cancels interest rate hikes. Not a good sign.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. August 12th, 2015 InvestWithAlex.com

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