As you might imagine, strategic investor and CNBC Contributor Doug Kass expects more selling.
Although he's not big into charts, the Seabreeze president and renown bear has taken notice of a somewhat obscure pattern called ‘3 peaks and a dome’, which Kass says is presenting itself. And it’s an ominous sign because it’s a formation that appears only at important market tops.
According to Kass, investors shouldn’t be surprised. He says the signs have been manifesting themselves for quite some time now.
”Domestically, all signs indicate the economy is weak. It is unambiguous,” he says.
And looking at the global economy, he adds the latest economic data shows that China PMI (published by HSBC) is close to contraction at 50.1. And he adds the ZEW Indicator of Economic Conditions in Germany fell to –9.0 in June.
“Germany is supposed to be the strongest part of the Eurozone,” says Kass. “The world is slowing folks. The notion of a smooth and sustainable recovery is now in question."
And he thinks world leaders know it.
“When I looked at the SPR release and listened to Bernanke's press conference I got a sense of panic from the policy makers,” Kass says. "We're entering an uncertain and scary market."
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