Trump Threatens While Central Banks Hedge

Are Central Banks Hedging Their Tightening Plans?The stock market remained choppy for most of the week, as investors were leery of what the central bankers may or may not say at their conference at Jackson Hole, Wyoming, that began Thursday.Janet Yellen spoke on Friday about “financial stability” and said any changes should be modest. Expectations were that she would speak on systemi [Outsider Club logo] Trump Threatens While Central Banks Hedge [Dennis Slothower Photo] By [Dennis Slothower]( Written Saturday, August 26, 2017 Are Central Banks Hedging Their Tightening Plans? The stock market remained choppy for most of the week, as investors were leery of what the central bankers may or may not say at their conference at Jackson Hole, Wyoming, that began Thursday. Janet Yellen spoke on Friday about “financial stability” and said any changes should be modest. Expectations were that she would speak on systemic risks, which is a key topic for banks should a recession be rearing its ugly head in the near future. She didn't go into much detail, outside of saying that the economy is stronger as a result of Fed policies and that there may be good reason for "modest" changes, like relaxing limits on banks' equity trading. I think the very topic is suggesting what is in the mind of Janet Yellen and in the head of the Fed, as we’ve seen four rate hikes since December 2015. At this point, you can bank on another rate hike in December. Here, again, I think if Yellen thinks the Republicans can pass some sort of tax reform, the Fed will raise rates, but if the Fed believes the Republicans are going to fail at this, too, we may not see another rate hike this year. What the market wants to know is what Yellen and Mario Draghi might say about the end of QE and their plans regarding tapering of their central bank balance sheets. No one really expected any useful information out of this speech, and Yellen did not disappoint in that regard. The market was up slightly after her talk, but it was nothing more than what we'd see in normal intraday trading. [A Catastrophic Fault Line Has Formed In The Market]( There’s an underground fissure that’s about to shift, unleashing unimaginable destruction on stocks and perhaps your accounts. While this crack in the markets formed decades ago, several recent events have transpired that could make this crash “the big one” — impacting 99 out of every 100 stocks. Only a few will survive the bloodbath, and those who do will come out richer than ever. If you want to be one of them, [click here to watch this critical video to the very end.]( Trump Threatens Congress Part of the stock market choppiness is a result of President Trump warning of a government shutdown if funding is not found to build the Mexico border wall as the U.S. debt ceiling looms. Congress has 12 working days to resolve this when it returns from its summer recess on September 5th. The president seemed to gain some traction for “tax reform” instead of “tax cuts” on Tuesday, and now he is pushing for funding to get the Mexico border wall built as an accomplishment for this fall. I guess the stock market got discouraged thinking our senators aren’t willing to give him much of anything. Still, somehow politicians can always figure out a way to borrow money, but their inability to pass pro-growth fiscal policies will soon come back to haunt them, as the risk of recession continues to loom ever more threatening. Tight Real Estate Market On Wednesday, we learned that new home sales tanked 9.4% for the month of July, dropping to the lowest number in seven months, raising concerns of a slowdown in the housing market. [70823-new-home-sales]( How Trump Really Makes His Money... New bombshell report reveals the powerful, secret source of income Trump has used for decades to cover up his worst financial blunders. Now it’s gone public, and working-class investors everywhere are using Trump’s trick to become millionaires. To learn how to use his secret yourself, [click here now.]( New home sales for July were 571K verses 627K at this time in July 2016, adding to the worries that the economy is struggling. While new home sales fell 9.4% in the month of July, it is commercial real estate that looks the most vulnerable, especially with so many mall closures. [70823-US-commercial-real-estate]( Notice inflation-adjusted U.S. commercial real estate prices are back to where they were at the peak just before real estate burst in the 2007–2008 Great Recession. In truth, with so many retail shops closing, it is not hard to see why commercial real estate will soon be in trouble. $1 Stock Set to Soar $8 in the Weeks Ahead Get the stock market’s biggest bang for your buck... Every $1 share you buy of this small mining company could make you $8. This company is in a unique position to supply an extremely rare resource called “Pure Carbon.” And shares are poised to soar on runaway demand from America’s biggest technologies — electric car batteries, solar panels, cell phones, laptops, and military tech. Tesla, Apple, Toyota, Honda, and dozens of other companies are already on the list to buy record amounts of this Pure Carbon. How many $1 shares will you be holding when this stock takes off? [Click here to watch my new video.]( Market Strength Eroding Meanwhile, the technical picture of the stock market continues to erode as we go into the last week of the month. I mentioned before we want to keep a close eye on the development of a couple of key factors. The McClellan Summation Index is a breadth indicator and is simply a running total of the McClellan Oscillator values. As noted before, a bear market signal is generated if the McClellan Summation Index drops to -500. [70824-NASI]( As you can see, for the Nasdaq Composite, it is plunging fast! It wouldn’t surprise me to be near -500 by the end of next week, just as we head into the month of September. The second technical concern is that the Russell 2000 index has broken below both its 50-day and 200-day moving averages. It could stage a rally and get back above it again, but it is now short-term overbought with the daily stochastics at 80%. That’s not good, suggesting another correction is likely soon, and it’s still below the 200-day moving average. The 50-day moving average of the Russell 2000 is currently above the 200-day moving average, but it is quickly narrowing. A bear market sell signal is generated when the 50-day breaks through the 200-day, which is called a “death cross.” Technically, this is a poor development that is not far away now. [70824-Russell2k]( New lows continue to outpace new highs. I could go on, but the main point is institutional investors are getting ready as if they were preparing for a financial storm by becoming more and more defensive, and it is showing up now in the technical underpinnings of the stock market. The S&P 500 index consistently failed to push above its 50-day moving average this week, as did the broader NYSE index (and now sits in short-term overbought conditions again). Next week should be revealing. To your wealth, [Dennis Slothower Signature] Dennis Slothower Editor, [Wall Street Underground Profits]( 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 Profits](. For more about Dennis, check out his [editor page](. *Follow Outsider Club on [Facebook]( and [Twitter](. [NOIC_conf2017_300x250]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [What’s REALLY Pissing Off the Russians]( [Sharks, Torpedoes, and The Next Big Market]( [Pot Prices Slump, And It’s A Good Thing For Investors]( [In Today's Uncertain World, There's Only One Sure Investment]( [The Big Australian Gold Gamble]( Related Articles [The Big Australian Gold Gamble]( [In Today's Uncertain World, There's Only One Sure Investment]( [Your Money Is No Good Here]( --------------------------------------------------------------- This email was sent to {EMAIL} . It is not our intention to send email to anyone who doesn't want it. 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