HARMFUL TO HEALTH!

June 25, 2003

Let me warn you that if you choose to continue reading today’s commentary that it could be harmful to your health- emotionally speaking.

There are many things that play in to my June 11th warning that was to play out by July 4th. Obviously one of those had to do with the financial markets. While it’s very hard to make any predictions in the short-run, the long term trend is very bearish.

Today was an historical day as the Transportation Index fell nearly 112 points- a staggering drop! Both the Industrial and Transport indexes are now BEARISH. Dow Theory tells us this is an OMINOUS SIGN. And you thought Mel Gibson’s new movie (Signs) was going to be scary! In other words, the market itself is confirming that things are not only BAD but they are going to get WORSE! You haven’t seen anything yet.

After 9-11, the markets shut down and regrouped. When they opened ten days later on September 21st, the Nasdaq dived to 1,423. Today the Nasdaq closed at 1,424. Got the picture? The Dow is now 905 points lower than it was when the first trading day ended for the year 2002. Everywhere you LOOK, you see RED. But, tune in to CNBC and everyhting you HEAR will be “buy this stock, buy this sector”. The bull market died three years ago but Wall Street is still selling BULL!

Come to think of it, reading this could be good for your health, if you’re OUT of the market or getting out, because as I said, you’ve not seen anything yet. And, I wish I didn’t have to say it. How I’d love to bring just GOOD NEWS, but in this current environment, it won’t be found on Wall Street. It does exist elsewhere though- mucho GOOD NEWS!

PS. I wrote the above Tuesday evening. This Weds. am, World.com has admitted to the world’s largest fraud- and you thought that was Enron. Markets are falling like a rock, gold is surging, interest rates are tanking, and the Dollar is going bye-bye. What a day this will be! What a day for Greenspan and the FOMC to report- on what a lousy job they’ve done over the last five years.

Written by Ernie · Filed Under Daily Commentary