“A Perfect Storm”

Wall Street worst performance week since June 2011

Technical Analysis

Week: Oct. 13 to 17

By:Eliecer Alberto Velasco BS, Ms.

S&P Erases YTD Gains

200 day Moving Average

Oct. 15, 2014Decline

-9.8%

Today is the end of nearly two years trading above that technical indicator

Bear Market

200 Day Moving Average

Oct. 15, 2014

YTD 2013 - 2014

-7.2%

Bear Market

200 Day Moving Average

Dow Jones Industrial Average

GO

The breaking of the 200-day moving average means the stock market’s has officially turned down.

200 Day Moving Average

Bear Market

Oct. 15, 2014

2014

DJIA, S&P500 and NASDAQ YTD Comparisons

200 SMA

EconomicOil ProductionWars & ConflictsWeatherBRICS CountriesEBOLA Outbreak

Escalating Geopolitical Tensions & Global Economic Concerns

“Geopolitics is what’s really driving the market at this moment and is putting the global economic recovery at risk,” WSJ

Oct.14/14

Survey of Fund Managers this week showed the lowest optimism in the outlooks for economic growth and inflation in two years!

CBOE VIX or Chicago Board Options Exchange Volatility Index

Measure of Volatility or “Wall Street Fear Gauge”

Spiked above Historical Average

Historical Average

Oct.14/14

Factory Orders-5.7 %

World Traumatic Economic Events

Retail sales dropped 0.3%

Wholesale prices fell for the first time in a year.

Weakest German investor confidence in

two years

Unable to collectively lower output

Chinese factory prices dropping for a record-

tying 31st month. Industrial production tumbled

3.3% from a year ago

IMF says Global economic growth expects to be 3.3% in

2014, down from its April forecasts 3.5%

Week: Oct. 13 to 17

GDP 2.5 %

30.5 million barrel a day

For the first time in 16 months

The yield had dipped as low as 1.865% as investors fled stocks, junk bonds, and other risky assets amid fears over slowing global growth and move for the

safety of government bonds.

10/09/2014

European stocks fell for an eighth day in the longest rout since 2003

Nikkei 225 Stock Average

Nikkei 225 is the leading and most-respected index of Japanese stocks. It is a price-weighted index comprised of Japan's top 225 blue-chip companies on the Tokyo Stock Exchange.

Gold, a Safe-Haven CommodityUSD $

Gold - Electronic [GCZ4]

Dow closes down for 6th day in a row

surrounded by high volatility

Uncertainty reigns in the Stock Market

Confusion

Chaos

The seeds of another collapse had already

sprouted

Geopolitical

concerns

Meltdown

Turmoil

Volatile session

A “Perfect Storm” on the selloff

The stock market, inevitably, is

going to crash

Panic

The Wild West of volatilityDece

lerating

Wild Swings for Stocks

Selloff

Whirlwind trading session

Economic data that’s worrisome

Harrowing

Ris

k a

ve

rsio

n

U.S. stocks slide; Dow drops triple-digits

Anarchy A

larm

ing

European stocks slip into correction

Stocks from Energy Sector Sinks

2014

Increasing Crude OilSupply

Decreasing Crude Oil Demand

Energy Sector breaks long-term uptrend

200 Day Moving Average

50 Day Moving Average

Uptrend line

Uptrend line

Oct. 15, 2014

Oct. 17

2014

U.S. drivers are celebrating the benefit of strong global crude production and weak demand causing oil prices to drop

$81.17

Crude Oil [WTI] Prices fall as supply Grows and demand Shrink$107.77

$85

$90

$95

$100

$105

Jan. Mar. May Jul. Sep. Oct.16/2014

When oil prices fall below $100 a barrel, Russia and the OPEC countries have a hard time balancing their budgets, which are largely dependent on oil revenues.

Barrels per Day

Highest $3.696 in April 15

Lowest $2.956 in Oct.17

2014

$/gallon

Regular gasoline price in the U.S. fell to the lowest level in more than three-and-a-half years

U.S. oil output increased to 8.88 million barrels a day the week of Oct. 3, the most since March 1986. U.S. production has increased 65 percent in the past

five years

The surging dollar, plummeting oil prices

and recessionary bond yields are

creating havoc in the markets because

they are signaling deflation.

Russia needs oil prices of $117

a barrel to break even.

Russia, the single worst major global stock market of recent times, according to The Wall Street Journal.So far in 2014, the RTS Index has lost 26.2% and averages 8% annual declines over the last three years.

Investors tend to behave the same way when they are driven by similar levels of

uncertainty, fear and/or greed.

Global Geopolitical tension,

Ukraine, Syria, Iraq, Israel, Hong

Kong, North Korea, Afghanistan….

Ebola is this year’s October surprise

Why Wall Street loves this boom and bust? Because Panic buying and Selling increase fees

Interconnected worries over deflation, a potential rerun of the eurozone debt crisis and some surprisingly rotten U.S. economic data, start the flame!

4,039 Deaths Barclay Berdan is the CEO of Texas Health Resources apologizes for EBOLA response at Dallas

Hospital, “Health Presbyterian made mistakes in handling this very difficult challenge and is deeply sorry for failing to identify Ebola as the cause of Thomas Eric Duncan’s symptoms”.

EBOLA and The deja-vu selloff effect

SP500 2014

The panic over the Ebola crisis appears to be reaching a climax point

Now is the best time to invest in the FOREX Market!

BRICS Don’t Like the Dollar-Dominated World Economy

Would cause a collapse of the U.S. dollar as the world’s reserve currency and a worldwide depression

Brazil Russia India China South Africa

They announced a $100 billion capitalization of a Contingent Reserve Arrangement for BRICS‘ New Development Bank, with an initial $50 billion fund, $10 billion coming from each of the five

members. Its headquarters will be in Singapore. Yuan

Renminbi,

Weakening of the USD$

Stronger USD$

Selling USD$ to buy Swiss Franc

Swiss Franc, a “Safe Haven” Currency

2014

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