Okay everybody, here we go. It’s me, Gregor Manirino. Wednesday, May 29, 2024. I really missed all of you. Honestly, it’s just not right when I’m not here. Anyway, people, let’s talk. A pre-market report. We have so much going on here, and I’m going to say a few things that may be surprising to you. But, again, things are changing, and they’re changing rapidly. With regard to this market, since I’ve been away, it hasn’t done very well. And you know exactly why, if you’ve been following this blog. Risk in this market is getting extreme. We are almost at 300, according to the MMRI.

You and I specifically have been watching this support level. Look what happened here. We bounced off of it, and it looks like we may be on our way higher, potentially much higher. Now, on the back of this, there’s a couple of other things that are going on here. I want to read this to you real quick. So, this is about hedge funds. Now, look. This is supposed to be the smart money. Well, this is what’s going on here. Hedge funds sold more stocks last week than in any other period since January. According to Goldman Sachs, this is the largest sell-off of U.S.

industrials in more than a decade. Money managers in the week running from May 17th to the 20th launched a major exit from U.S. stocks that are particularly entwined with the health of the U.S. economy. Now, here’s something interesting that you and I have been following for the past several weeks. We’re getting little hints here and here and there from the mainstream media that the economy is not doing very well. This morning from Market Watch, here’s a headline for you. Why the stock market rally can strengthen despite a slowing U.S. economy. I’m here to tell you something, okay? First of all, this is an admission, kind of hidden a little bit, in that the economy is not as strong as you and I have been led to believe, you know, like temporary and transitory with regard to inflation, which this thing just keeps getting worse and worse and worse.

But if this does not stop, okay, if this continues, if we break 300 and above, I’m telling you right now that this market’s going to take a hit and it’s going to be big. Just over the past few days, since I’ve been away, we watch risk rise, markets not liking it, stock futures this morning are lower across the board. People this year, the MMRI, free to you, free to everybody on this planet, is the best risk indicator for the market that has ever been created in the history of the world, even though it’s my little brainchild, I’m not bragging about it.

But if you’ve been following the MMRI, you’ve been so far ahead of the curve and I hope you continue to watch this, especially now that we have clearly bounced off of this and we could be going much higher. So look, what does this mean in the grand scheme of things for the stock market? With regard to just following what’s going on here with these hedge funds here and they’re dumping this market like we’ve never seen before, it may be time to get out. And I wouldn’t blame anybody, again, to get out of this market.

What happened last time? Do you remember several weeks back when we had the same issue with risk in this market? I was telling everyone, I don’t blame you. I don’t blame you for getting out of this market if you want to. We just sit in cash for a little while. If you got back in, market did go higher, but now it might be time to pull out. And I’m not saying I have done so yet. When I do, and I’m considering getting out of this market, I am considering getting out of this market.

Yes, I have been the biggest raging bull, one of the biggest bulls on Wall Street since the last selection of President Trump. I said the market would go higher. I said we were going to hit record high, record high, record high, record high. I’m on record saying this. Greg Hunter, go to Greg Hunter’s… I don’t even know if he’s around anymore, but Greg Hunter and I did an interview right after the presidential selection. Last time, I said watch what was going to happen to the market and I nailed it to the wall, despite the big sell-off the night of the selection.

Anyway, they proved to be pretty true. But anyway, look, here’s the situation. Let’s step back a moment and look at the bigger picture. I’m looking at the macro stuff here. Let’s look at the macro. The macro picture is we’re in a presidential selection cycle and I have been saying I believe they’re going to prop up this market, okay? Through, or at least up until, the next presidential selection. Remember, there will be no election. There is no election at all. This is a selection and it’s always the same story here. Sorry. Anyway, so that’s our current situation here.

Anyway, so with all that, let’s move forward. So as you all probably know already, another $275 million weapons package for Ukraine. Imagine my shock. Crude oil marching higher. Ten-year yield obviously higher. This is why we’re seeing this here. Gold and silver doing very well. Cryptocurrency is under pressure. That’s crude oil going up here. Home prices hit a new all-time record. I imagine my shock. Here’s something else you need to know about and I want to again readdress this issue. You and I have spoken about the issues with regard to the banks for a very long time.

Now, yes, we have focused on the smaller and regional banks, but the larger banks are in trouble too, but they haven’t out. So let’s talk a little bit further here. So again, we’re finding out that debt defaults continue to skyrocket. What does this mean? What does it mean? When you hear the mainstream media, whoever’s saying, oh, debt defaults are on the rise. Credit card defaults are at a record high. You know, don’t let it go in one ear and out the other. What does it actually mean? It means the bank’s balance sheets are being loaded up with bad debt.

Does this sound familiar to you? It should, because this is in part what led to the meltdown last time. Now, the larger institutions are going to be saved here for the most part, except for maybe one sacrificial lamb on Wall Street. You know which bank this is, Bank of America, I believe, is being set up as a fall guy. All right, could be another one, but I really believe Bank of America is probably the one that’s going to go down with regard to major institutions. So when you hear about it, again, debt defaults are skyrocketing.

Think about what that actually translates to. It means the balance sheets of these banks are being loaded up on bad debt. We’re going to see a domino effect of smaller institutions collapsing, and the larger banks are going to buy the assets of these smaller banks with pennies on the dollar. You all know that. That’s the out of the big institutions here. We also heard from the ghoul, okay, Mester, you know. Ugh! She wants you to know that the Federal Reserve is really uncertain, this is her words, as to where the economy is going.

Now tell them, Greg Manarino, one more time, just one, who is responsible for the economy, for the monetary system as a whole, for the financial system, and for the financial markets? It’s the Federal Reserve. So when you have a freak like the ghoul coming out and telling you that it’s uncertain, it’s absolutely certain. They know what they’re doing. This is not a comedy of errors. You will know that. Where we are is deliberate and they’re not done. Again, another $275 million installment for weapons, which, of course, you voted for, right? You voted to fight another war and expand war, and war is expanding all over the place, all over the place, and this is not a secret to any of you.

We are going much deeper into war, much more cash to fund war, the expansion of war, more debt piled on the Federal Reserve inflating even further, more easy money. Now, the market ain’t saying that, and it’s being reflected here in the MMRI. I believe we’re going to see a rate cut sooner than later. It’s going to be an emergency meeting called by the Fed as to how they have to pump this. Some event will occur, in my view, that will allow the Fed to continue to inflate even more so, and I think that’s pretty much a no-brainer here.

Now, with regard again to the economy, how about this? As of right now, history is being made. One in eight American citizens is now receiving some kind of government assistance, and in this case, it’s food stamps, one in eight. Is this the definition of a booming economy? When you’re walking down the street and you’re seeing all these throngs of people, one in eight of them is receiving some kind of government assistance or food stamps or something along those lines. This is an economy in collapse, okay? You and I have outlined this forever.

Everyone, you know, I get these episodes, Greg, where’s the collapse? Where’s the collapse? They keep focusing on the stock market. Meanwhile, you and I have said, the faster the economy craters, the higher the market’s going to go, and I think we’ve nailed that one to the wall. The illusion of the market. That’s why stepping back and looking at the macro picture, although I just said I wouldn’t blame you for getting out of this market. You got hedge funds dumping this stock market like they’ve never done before. Okay, that’s a tell that maybe something is awry here.

If risk continues to rise, if we break over 300, that’s extreme risk, red, okay? I can promise you that this stock market could fall, and it could fall substantially. So if you want to get out for a while and sit in cash and ride this wave, I wouldn’t blame you. I might do the same damn thing as well. It really may be time to sell. We sit back. We wait for the easy money, which is common with regard to the rate cuts, which will allow the Fed to inflate even further, and then we get back in.

You understand? This is not hard. You just got to know when to make the right moves based upon your risk tolerance and a whole bunch of other things. Or if you’re looking for opportunity to buy this market cheaply, you know what? It looks like it may come up here because more easy money is coming. The distortions that are now occurring across the spectrum of asset classes, and I mean across the board, are beyond anything that anyone can possibly imagine. Even for myself, it’s hard to get my head around this. It’s huge.

It’s tremendous. So anyway, with regard to this headline, laugh, okay? Because the stock market is going to fall if risk continues to rise, and the economy is slowing. They’re admitting right here. As a matter of fact, the economy couldn’t possibly be worse off than it is, but you’re not allowed to know that. Think about what I’m saying here. You’ve got debts and deficits hyper-ballooning. You have an economy in free fall, literally. It’s in free fall, and the stock market is sitting pretty close to record highs. Does that make any sense to you? It’s only easy money that’s propping this up.

It’s more debt. It’s more debt, and that’s it. These distortions that exist, again, across the spectrum of asset classes, are going to correct. They’re going to overcorrect. Where’s the bottom of the Dow? Who knows? It could be Dow 6,000. It could be lower, okay? But all we do know is this is not a comedy of errors that got us here. This is all deliberate. A meltdown in the debt market is going to be so extreme that people are not going to believe how bad this is going to get here, and that’s going to be reflected again in the MMRI.

Way, way over 300, 400, 500. Who knows where this can possibly go? And the stock markets around the world are going to melt down so badly and so fast that people are not going to know what to do with themselves. This is why you and I stay ahead of the curve. Like I said, you want to get out of this market and sit in cash flow just a little bit? Do it. There’s nothing wrong with doing that, you understand? If you’re a market player, if you’re someone that understands the markets, you don’t just sit here and don’t take action.

Sometimes you need to take action. Most of the time, you’re going to be right. Sometimes you’re going to be wrong. Okay, that’s just the way it is, and there’s no way of escaping that. But just sometimes, just getting out of this whole thing is the best thing to do, to sit back, take in the situation here. Because according to what we’re hearing from hedge funds here, the so-called smart money, they are selling stocks at a pace that’s never been seen before. Money managers are dumping stocks connected to the economy. Why? Because the economy is dead.

It’s in free fall. And then we have the other thing. We have money velocity continuing to pick up. Think about what I’m talking about. The rate at which cash is moving through the economy is gaining speed while the economy is slowing down. What’s happening here? This is all of those extra bills that have been created by central banks, under the current president, under President Trump, under the president before him, that have done nothing but empower the Federal Reserve. Okay, they’ve called on the Fed to continue to prop up the market, to continue to inflate.

Now, all of these bills are starting to chase the same amount of goods. No three presidents in American history have colluded more directly with the Federal Reserve than the last three presidents to empower that organization. And if you don’t see it, you’re absolutely blind. You’ve been blinded, and you’ve been deceived. Yet again, imagine my shock. This whole game is a deception. It’s a grand deception. And all we got is each other, people. And that’s why I’m here to be away from you. Anyway, all right, people. Look, we covered a lot today. I want to hear from you on these things.

Please let me know where you stand on all this. And we’re going to get together later and finish this whole thing. 4 or 5 p.m. Eastern for my livestream. I really hope to see you there. We’re going to have a lot more to talk about, all right? This guy here loves you from the heart. I missed all of you so much. Thank you for being here. Thank you for your love and your support. Until we see each other again later, 4 or 5 p.m. Eastern, please, people, take care of yourselves and take care of each other.

Okay? I’ll see you later. Bye-bye. [tr:trw].

See more of Gregory Mannarino on their Public Channel and the MPN Gregory Mannarino channel.