– State of the Market Address:

• The Dow is now above 23,000.
• Shiller’s Adjusted S&P P/E ratio is now at 31.17 Now at arguably the highest level in history (if we adjust for 2000 distortions) and still above 1929 top of 29.55.
• Weekly RSI at 80 – overbought. Daily RSI is at 85 – overbought.
• Prior years corrections terminated at around 200 day moving average. Located at around 18,200 today (on weekly).
• Weekly Stochastics at 99 severely overbought. Daily at 99 – severely overbought.
• NYSE McClellan Oscillator is at -10. Neutral.
• Volatility measures VIX/VXX remains at suppressed levels. Commercial VIX long interest increased to 112K contracts net long. 
• Last week’s CTO Reports suggest that commercials (smart money) are shifting their positioning back to net short. Short interest has shifted slightly higher during the week. For now, the Dow is 10X, the S&P is at 3X net short, Russell 2000 is now at 8X net short and the Nasdaq is net neutral.

In summary: For the time being and long-term, the market remains in a clear bull trend. Yet, a number of longer-term indicators suggest the market might experience a substantial correction ahead.  Plus, the “smart money” is positioning for some sort of a sell-off.

If you would like to find out exactly what happens next based on our Timing and Mathematical work, please Click Here. 

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I am truly amazed. 

Talk to most Americans today and they will surely relay two undoubtedly true facts your way. First, North Korea is the most evil place in this galaxy and the next and must be taken care of. That in itself is debatable, but that is not our purpose here.

Second, any war with North Korea will last all of 15 minutes. With “Mission Accomplished” banners flying high the next day and North Korean children showering their American liberators with flowers of joy.

This is, how should I put it mildly, absolutely insane – IDIOCRACY. 

Any reasonable analysis would suggest we will see bloodshed on a scale we haven’t seen before. And we are almost there…..

Nuclear war may break out any moment, says N. Korean UN envoy

North Korea’s deputy UN ambassador has warned the UN General Assembly that the crisis on the Korean Peninsula “has reached the touch-and-go point and a nuclear war may break out any moment.” Kim In-ryong said North Korea is the only country in the world subjected to “such an extreme and direct nuclear threat” by the US, AP reports.

And that brings us to this gem…….

US Deploys Special Forces “Decapitation” Team To South Korea

And while details of the drill were well-known in advance, what was reported for the first time overnight from Yonhap is that a unit of U.S. special forces tasked with carrying out “decapitation” operations is also aboard a nuclear-powered submarine in the group, according to a defense source. So far, little else is known about why said decapitation team is on location, or whether it will be put into use, although it presence may explain Trump’s “calm before the storm” comment that beffudled the media two weeks ago.

Is this a bloody joke? 

Whom are they going to decapitate…..themselves? Do they expect to fly their broomsticks over one of the most militarized countries in the world, find Kim’s bunker and shoot him between the eyes? Like I have said, if this is their plan we are all about to die.

A war with North Korea is unwinnable. Period. Their terrain and 5 million strong armed force (on top of every fighting citizen) nearly assures that. Plus, analysis suggests that Russia/China will support North Korea as a proxy. Especially if the US fires first.

If the Trump Administration is stupid enough to start this war, here is what will happen….

1. Trigger event – it can be anything at this point.
2. US attacks North Korea with conventional weapons.
3. North Korea nukes Seoul, Japan, Guam and possibly Hawaii. Plus, carrier groups floating nearby. It will attempt to hit the mainland, but it is unclear if they are capable. Either way, tens of thousands of Americans will die. Millions of South Koreans/Japanese.
4. US retaliates with nuclear strikes of their own – killing millions of North Koreans.
5. Stalemate. Kim is still sitting in his bunker and his military is waiting in the mountains. Conventional American forces are useless in North Korea – just take a look at Afghanistan.

Impossible?

NO, that is the reality about to unfold. And most Americans are not aware of the fact that Mr. Trump is about to walk us all off the cliff. And it can indeed get a lot worse.

Congress warned North Korean EMP attack would kill ‘90% of all Americans’

Are you ready? 

In terms of the stock market, the situation is incredibly complex. If you would like to find out what happens next, based on our mathematical and timing work, please Click Here.