US Stock Markets Pummeled For Two Days After Yellen’s Gambit

The Dow plummeted 367 points on Friday in its biggest drop since September.

Did you notice? Hope so.

It was the biggest drop since September and when you add it all up, 2015 has been the most volatile year for averages since 2008. In fact, if you add it up, the Dow has just managed to shed over 600 points in two days.

The reason for the sell off supposedly has to do with radically lower oil prices hitting the bottom lines of major banks with considerable energy leverage. Maybe so. Or maybe it was the result of the Fed’s recent rate hike.

Now here’s a question for you. Are you a TDV newsletter subscriber yet?

If you are a regular or even irregular reader of this blog, you’ll recall our now-famous Shemitah prediction that called for significant market volatility in the fall as well as geopolitical and economic tumult.

Everything has happened just as we suggested. I wasn’t just right about market averages. I was right about the entire world situation.

And worse is to come. When it comes to markets, Janet Yellen is not stopping yet.

It took Janet Yellen (and before her Helicopter Ben Bernanke) seven years, to the day, to pull the trigger to raise rates from 0%. In the hours afterwards, the US stock market rose with relief as the world didn’t end the second rates were raised to 0.25%.

However, in the two days following, the Dow fell 252 points on Thursday and 367 points today for a two day wipe-out of 619 points.

The chart of the Dow Jones Industrial Index for the last month looks very tenuous.

As can be seen, there are now three lower highs in a row and three lower lows. This is very bearish action.

When looked at from a 6-month perspective, you can see the large drop during the Shemitah 2015 end-date and then what was a rebound that never regained losses from the summer.

During that six month period we’ve had six lower highs… and as of today the Dow broke below support near 17,200 and there is no more support until below 16,000.

We’ll have to see how things play out from here but at the moment a test of the August/September lows prior to year-end isn’t out of the question.

Not much was going up today. Apple, down from over $130 this summer, closed down another $3 to $106 today. Morgan Stanley is off from over $40 this summer to near $30 today, closing down more than 3% as they also announced 1,200 job cuts. Citigroup was also down 3% as they said they would cut more than 2,000 jobs next month.

On the upside, gold rose 1.5%, silver was up 3% and bitcoin continued on its ride higher, closing up 1.5% on the day to $463 and more than a 100% gain in the last three months.

To say we are headed into an interesting end-of-the-year and, even more-so, year ahead in 2016 as we enter into the Super Shemitah/Jubilee year is an understatement.

The amount of black swans out there, from junkbonds, to banks, to currency crises and even World War III, are so large that the black swans are blotting out the light from the sun!

All it will take is one black swan to descend and it will set-off a chain reaction that will leave our world a very different place than anyone is used to.

Of course, like at any time with a massive paradigm shift, there will be many who did not see it coming who will get hurt. And there will be some who foresaw and not only will survive it but profit immensely.

We’d reckon a guess that those who watch CNN and CNBC as their guideposts will go down with them like their ratings have. And those of you who are reading this, now, have an opportunity to be ahead of the crowd at the most important time.

On that note, you now have less than three days to take advantage of our lowest-rate-ever Survive Shemitah package (click here for more) to get more information, insights, analysis and recommendations on how to survive and profit from the coming collapse. We’ll be raising our rates in the new year so this is your last chance to get access to our service at these prices (note to current subscribers: as long as you continue to renew you retain the price in which you first subscribed).

I was one of the first to say that we would enter into a crisis/collapse period this fall and it did, with worldwide markets all collapsing in August/September. I said that it would be just the beginning, not the end, of a crisis/collapse period that will shock the world. And, I’ll soon be outlining to subscribers more on what I expect for 2016, the year of the Super Shemitah, or the Jubilee.

If you thought this fall was bad, you haven’t seen anything yet.

Originally Appeared At The Dollar Vigilante