The stock market is on the line for the whole QE forever rally.
This is an extremely dangerous situation. We are heading into a holiday weekend when any number of the current geopolitical situations could get very ugly.
Moreover, it’s not as though rally was driven by fundamentals. Ignore the ridiculous “official” data coming out of the Federal Government and have a look at what corporations are telling us.
Indeed, last quarter we saw revenue misses at:
1) Merck (big pharma)
2) Molson Coors (alcohol)
3) Clorox (cleaning materials)
4) US Steel (steel)
5) McDonald’s (fast food)
6) 3M (conglomerate)
7) GE (conglomerate)
Earnings can be massaged via accounting gimmicks. Revenuescannot. When revenues fall economic growth is falling.
And the market is on the verge of taking out its trendline.
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