In what can only be viewed as a prophecy of the carnage to come, blood ran knee-deep on Wall Street yesterday:
The Dow Jones Industrials plunged more than 512 points — a shocking one-day, 4.5% decline.
The S&P 500 fell even farther, losing 4.8% of its value in a single session.
And the tech-heavy Nasdaq fell farther still — losing nearly 137 points. A staggering 5.4% of its value simply vanished in a single day!
Many stocks fell even farther: In the financial sector, MGIC Investment dove 20.5%. The mortgage insurer, PMI Group, on the brink of bankruptcy, collapsed 53.4% — more than half of investors’ money was simply wiped out in just a few hours.
By the end of the day, CNBC was reporting that one-hundred percent of the profits all three indexes had generated this year had been completely wiped out.
Now, whether the market bounces or not, DO NOT forget this crucial warning:
Major damage has been done to the stock market. Critical support levels have been taken out.
Plus, the U.S. economy is slowing. The second phase of this great “double dip” recession is now beginning.
U.S. stocks — and particularly financial stocks — are in grave danger just like Master Trader Kevin Kerr said they’d be!
Good luck and God bless!