Kevin Scully: "It's still looking like a correction and not a sell off or collapse"

I don’t know what caused the recent weakness in stock markets which happened to start around Oct 7 or 8 which ironically happens to be the date of the second Blood Moon in the Tetrad (see my recent presentation slides).  

Back to fundamentals, the weakness seems to be a series of events:  
a) weaker than expected August 2014 Industrial production numbers from Germany which suggests that the EU's economic recovery is weak.  
b) mixed US economic data which prompted the FED to indicate that the FED funds rate would be low  
c) mixed economic data from China  
d) lowering of Global GDP growth rates by the IMF and its warnings that unusually low interest rates could cause overheating in the OECD economies 
e) sudden weakness in commodity prices including crude oil  f) flight to safe assets - US Treasuries which saw the 10 Year Treasury Yields fall instead of rise (the latter was expected with the end of QE3).

No need to panic. I expect further market weakness which is part of a long overdue healthy correction for now.  

As in my recent presentation, I think investors should be defensive and use this weakness to accumulate defensive stocks which I have highlighted in my Lim & Tan presentation.