‘Black Friday’ – might come early for Wall Street by about two weeks; despite some pundits extolling ‘extant’ sectors they view as ‘reasonable values’ in this market; in-itself an admission of things falling apart on a rotational basis; much in the manner we’ve outlined for some time.. a process until they figure it out. 

I might add many such stocks (including extended Defense sector issues that are high and thus being ‘promoted’ on the basis of military preparedness), are merely in the line to be trimmed-down to better values; those so-called buys in most cases are actually sales (or avoids). Not to mention such calls to ‘buy’ do not mention ‘how’, as most investors with fully-laden portfolios are seriously at risk with respect to paper losses in their existing holdings. 

I mention this for a couple reasons: 1) it’s too soon in general to be a buyer in a market just starting to feel its oats on the downside, and just tripping levels I outlined that would kick-start algorithmic selling not buying; 2) major selling or redemption’s, if it’s going to really be a world that finally understands how Fed and other policies have worked against the well-being of the Nation, are barely out of the starting gate when it comes to a full downside pattern unfolding; 3) I pointed out for weeks how distribution was going on as a ‘narrowing universe’ of stocks was holding the Indexes up, while ‘rotational selling’, no long what of course earlier in the year was ‘rotational buying’, was becoming dominant; that was part of what we called the ‘lack of mojo in the momo’ stocks (momentum failures and no gusto to any move higher anywhere in recent weeks really); 4) because the market extended the move in October; that made November less safe, and increased the downside prospects for not replicating what preceded; and finally 5) that major hedge fund sales are just starting to be picked-up on, and that suggests increasing nervousness, redemption run risk, and aside the requisite periodic rebounds, a market that works to lower levels.