The Odds that an Important Top in Stocks will Hit Soon are Much Higher Than Most Investors Realize

Too many danger signals are staring all of us in the face right now to ignore.

Just a reminder, I will be on vacation next week, so this week’s edition of our weekend piece is being published today (Friday)…and is shorter than usual. (Some of the points are the normal length, but most are abbreviated…and there few of them)…..There will be no piece next weekend. I’ll be pubulishing again starting Monday, August 4 with my daily pieces…and the next weekend piece will come on Saturday, August 9^th. Thank you very much.

Table of Contents:

1) We ARE in a bubble…and the signs that it will top before year-end are all over the place.

2) So, investors need to get more defensive…and have a plan in place in advance on how to react.

3) If we’re wrong, we’ll be watching several key lagging stocks for outperformance going forward.

4) As always, the action in the chip stocks will be extremely important over the coming weeks.

5) Update on the charts of the S&P 500 and the NDX Nasdaq 100.

6) The important support/resistance levels for the US 10-year yield are well defined.

7) The Fed HAS made mistakes, but many of them have not been as bad as people realize.

8) Summary of our current stance: Again, we ARE in a bubble…and all bubbles (by definition) end in bad bear markets.