Crossing the Rubicon

On May 7, the DOW plummeted nearly a thousand points in a single day before bouncing back for a loss of “only” 348 points. The 1,000-point drop was the biggest intra-day drop in history.

A few called it a fluke, an aberration.

But it’s hard to believe that explanation of events when today, May 20, the market dropped an additional 376 points to close below the May 7 low.

In other words, the DOW has now fallen further than its lowest point on May 7, thereby confirming (in my opinion) a very bearish outlook.

What does all of this mean?

I’m not sure, really. If I had a crystal ball, I’d tell you.

But lacking that, I can make a few educated guesses:

1. We may soon see a renewed bear market, similar to fall of 2008.

2. We may soon see financial reversals in other sectors, not just stocks.

3. We may soon see additional government controls to try to prevent the market from outright collapse.

Keep your eyes peeled. We live in interesting times indeed.

Oh, and subscribe to Survival Joe, too. 😉