VRA Update: Death Spiral Alert

VRA Update: Death Spiral Alert

Markets are getting clocked...Dow is off 300 points, but the real losses are in high yield debt.

Working on 3-4 major developments and just looked up and cannot believe that its almost 11 AM EST.

Know this: everything I have been warning about is happening...right now.

Junk bonds are near a death spiral. This is the point from where they do not return.

There are multiple MAJOR debt based institutions attempting to liquidate their bond holdings and THERE ARE NO BUYERS.

Frankly, we could see a 500 point down day today....which could then get much worse on Monday.

HAVING SAID ALL OF THESE NEGATIVES, also know this; the VRA System indicates a bottom could be in place in 1-3 days. And I think you know my thoughts on the FED's PPT.

Continue to hold our market short ETF's. We are positioned perfectly, and have been for the last two weeks.

We have strong gains for sure....but again, this could be the BEGINNING of a major move lower.

HOW THE FED RAISES RATES NEXT WEEK I HAVE NO CLUE. BUT ALSO KNOW THIS; IF THEY DO NOT RAISE RATES, WE COULD EASILY FALL 1000 POINTS IN THE DOW IN 30 MINUTES.

Stay Frosty... 

Kip

vraletter.com