Many market commentators are quick to point out so-called "head-and-shoulders" patterns without giving any thought to form symmetry requirements, left shoulder versus right shoulder, as well as specific, accompanying volume characteristics. Well, the NASDAQ Composite has got it going on ...
A Tremendous Amount of De-leveraging Lemming Stampede
According to Jack Bogle of the Vanguard Group, there is "a tremendous amount of de-leveraging still to do." If this is true (and there's every reason to believe it is), then in this process of de-leveraging capital will need to be raised. Now, if it can't be extracted via financial tribute masquerading as "health care reform," then where do you suppose this needed capital might come from?
2008 was a year when "fundamentals" affecting stocks extended far beyond the business of listed companies. These have not changed one bit and indeed threaten a terrible bout of selling straight ahead. How so many investors could believe the bullish status quo of years gone by is set to continue only defies a reality that's as plain as the nose on your face.
How is it that, relatively common astronomical events coincide with some of the greatest stock market crashes of all time? The series of events starting in July '09 deserve attention no matter the answer. Elliott Wave-related considerations raising the probability of a stock market collapse are the reason why you might want to look to the sky this summer.
Of Three Bear Market Phases Last Remaining is Capitulation
There is a problem with Jim Cramer's All Clear, Bull Market Ahead thesis. The lender of last resort is all in. Likewise, chances Treasury's PPIP will be funded by Congress are about as likely as pigs growing wings. Are present levels about as high as the stock market will trade over the next five years (or longer)?