One Of The Signs Another Financial Collapse Is Coming – Dave Kranzler
Dave Kranzler
TheNewsDoctors.com
Mon, Jul 20th, 2015
As everyone knows, the primary stock indices are being aggressively supported and pushed higher by the Fed using the liquidity with which it as flooded the banking system. However, most of the non-marquee indices have been selling off. As an example, the SOX semiconductor index is down 10.5% since June 1st. I’ll bet a lot of you are surprised by that fact, given that the tech-heavy NASDAQ hit an all-time high last week.
When I was a junk bond trader, one of the sectors I traded was semiconductors/electronics. Because semiconductors are used in many everyday-use consumer goods, including automobiles, semiconductor sales is considered to be bellwether economic barometer. Thus, if the SOX is tanking despite a torrid rally in the Dow, SPX and Nasdaq, it likely indicates that the economy is slowing down – significantly.
Another bellwether indicator is financials. I noticed something quite interesting on Thursday, the day that the S&P 500 ramped up 19 points on meaningless to negative economic reports. One of the sub-categories of financials I follow is what I term “specialty” financial stocks. Most of the big bank and financial stocks last Thursday were up big with the SPX. But look at this:
The Rest…HERE
