When Will the Bears Land One on the Chin?

By: readtheticker | Sun, Feb 5, 2012
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When Will the Bears Land One on the Chin?

Within the world of stock market indexes there is one index that has rolled up and down with over 90% accuracy with its Hurst cycle, its simple, and it makes sense. Every investor both professional and retail should monitor this cycle for their own financial wealth well being. Soon the bears will land one on the chin!UPDATE2

Its the cycle on the Down Transports. Currently cycles suggest a stock market top mid Feb to mid March. Funny thing is that isn't there an important date around March 20th 2012 concerning Greek default. Hmmm, funny how cycles reconcile with fundamentals.

We don't know how the market rallied so well from Jan 1st, sure NYSE short covering or EURUSD short covering or the LTRO buying all the Euro junk, but what we do know is that fundamentals will mean something very soon and it could be the 'Ides of March' (13th, just ask Julius Caesar) that brings it all back down to the cold harsh reality of this debt crisis.

Previous Post: Copper and Dow Transports indicators of world growth

Dow Jones Transports

UDPATE1: You want some fundamentals, how about earnings arent that great, and the Fed is bearish. Why else would they keep interest rates low for such a long time !

UDPATE2: The Record Corporate Margin Juggernaut Has Just Rolled Over

Extract..."because with 39% of the S&P already reporting Q4 data, the implication is quite dire. If Kostin is correct, then the corporate margin juggernaut, which recently hit an all time high in Q3 of 2011, and which has for all intents and purposes been the one offset to deteriorating economic conditions, recurring Fed stimuli to the economy aside, has officially peaked and is now rolling over. This has huge implications for virtually everything, as it means that after 3 years of layoffs, corporate America has finally cut through all the fat and is now officially chopping into muscle with every additional layoff. It also means that going forward no matter how many workers are laid off, the corporate margin rate wil not increase. Furthermore, if Bernanke or Draghi officially launch another inflationary easing episode which more than anything exports inflation to China, which in turn reexports it back to America in the form of rising COGS, margins will compress even more."...

 


 

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Author: readtheticker

readtheticker
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