Market Correction Getting Serious

Stocks took another tumble following the biggest drop in oil prices in more than a year after the government reported a massive build in oil inventories. The stock market has corrected nearly every day in the month of March, yet mostly filling in gaps created following Donald Trump’s State of the Union address. This is pretty standard and up to this point, looks like nothing more than a brie [Stocks took another tumble following the biggest drop in oil prices in more than a year after the government reported a massive build in oil inventories. The stock market has corrected nearly every day in the month of March, yet mostly filling in gaps created following Donald Trump’s State of the Union address. This is pretty standard and up to this point, looks like nothing more than a brie] Market Correction Getting Serious [Dennis Slothower Photo] By [Dennis Slothower]( Written Thursday, March 9, 2017 Stocks took another tumble following the biggest drop in oil prices in more than a year after the government reported a massive build in oil inventories. The stock market has corrected nearly every day in the month of March, yet mostly filling in gaps created following Donald Trump’s State of the Union address. This is pretty standard and up to this point, looks like nothing more than a brief pause in an otherwise bullish uptrend — the exception being small caps and micro caps which have retraced prices to late November 2016. While there is the potential for a short-term bottom developing any day now, I want you to look at how overbought the stock market has become from an intermediate-term or weekly chart perspective. If we continue to sell off ending on Friday, after the March Jobs Report, the weekly patterns will start to rollover. $1.2 Billion Gas Fortune... Up For Grabs! More natural gas is burned as waste in North Dakota than in any other U.S. state. We're talking over $100 million a month that's just going up in flames. But now, new legislation is being passed to crack down on this wasteful practice. It's giving rise to an enormous opportunity for certain companies with the expertise to harness this flaring problem — and for savvy investors. [Click here now to claim your stake in this giant windfall.]( [mar 8 17 spx weekly] Notice how extended the S&P 500 index has become, now at the top of the long-term trading range, with the relative strength index (RSI) having peaked above 75%. This suggests the stock market is vulnerable to an intermediate-term correction in addition to this short-term correction. In fact, the stock market has only been this overbought two other times in the last decade, suggesting the stock market is overdue for a more serious correction than what we’ve seen up to this date and it may well be connected to what the Fed does next Wednesday with interest rates. Probabilities have now pushed up to 100% of a rate hike, especially after today’s climb in the private jobs report and building inflationary pressures. Yet at the same time the economy is in poor shape with Q1 2017 GDP forecasts dropping yet again — today down to 1.2%. Most of these economists tend to overestimate their forecasts, so there is a chance we could see even a negative GDP number in the first quarter. Why billionaires have him on speed dial Most people think you can only make money on gold when prices are rising... But a Texas man has discovered a way to make money on gold even when it's falling in price. And he does it by finding these little-known “glitches” in the gold markets. Spot them, and you can score triple-digit gains in very little time at all... even in bear markets. [Go here now for the full story.]( Crude Oil Collapsing? Today crude oil prices plunged $2.86 a barrel to close at $50.28, down -5.38% on the day — marking a seven-week low after the U.S. Department of Energy reported domestic oil supplies rose 8.2 million in the last week, which was quadruple analysts’ expectations. The velocity of oil inventories soaring warns of building recessionary pressures. This is the ninth straight weekly rise in U.S. crude supplies as the U.S. has more than made up for any OPEC cuts in oil production. Notice what is happening to high yield bonds in the month of March, given their high correlation to crude oil prices. A rate hike=higher U.S. dollar=lower oil prices=lower high yield bond prices. [HYB ETF weekly chart] Breaking: Billionaire John Paulson Just Made ANOTHER Historic Bet... You probably know billionaire John Paulson for shorting the housing market in 2007... It’s gone down as perhaps the single most lucrative trade in the history of Wall Street. But now Paulson just went “all in” on ANOTHER equally historic bet in 2016. And you won’t believe what he’s buying... how much he put down.... or the profits at stake. [Click here for the full story.]( This downtrend began when investors began to see the possibility of higher interest rates — now becoming a reality. Notice that commodities in general are sliding, not just oil prices. Gold fell $6.60 to $1,208 and is now again below both its 50-day and 200-day moving averages. This is technically a bear market for gold — though it could quickly reverse if other markets collapse on a lack of confidence as the Federal Reserve makes further rate hikes. Near term we are due for a minor rebound, within the context of an intermediate-term topping pattern. Buying dips at the moment is very risky, especially with the Fed looking to raise rates for the third time in succession in less than a week from now. To your wealth, [Dennis Slothower Signature] Dennis Slothower Editor, [Wall Street Underground]( Dennis Slothower has been leading a small but profitable group of investors to some extraordinary profits in both good markets and bad over the course of a 38+ year investment career, starting as a stock broker in 1979. In 2011 Dennis was named the top performer by Hulbert Financial Digest for avoiding the Crash of 2008. Now, he is bringing his extensive experience to the public through [Outsider Club]( and [Wall Street Underground](. For more about Dennis, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! 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