Stock markets rolling over

[CrackSmokeRepublican]

Video on Head and Shoulders top forming in Dow and S&P - could be big moves next week:

http://broadcast.ino.com/education/dow_ ... mpaignid=3
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Stock markets rolling over
Dr Prieur du Plessis


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Uncertainty over the global economic outlook yesterday took its toll on stock markets around the world as risk aversion favored safe-haven assets such as government bonds, the US dollar and Japanese yen.

In the US, stocks declined to their lowest levels since the end of May as investors await the start of the second-quarter earnings season.

I referred to the CBOE Volatility (VIX) Index in a post yesterday, and specifically to its use as a contrary indicator. The VIX, also known as the "fear index", closed the day 6.4% higher.

All ten US economic sectors fell, confirming a pattern of the defensive-oriented sectors such as utilities, health-care and consumer staples outperforming the cyclical sectors like energy, materials, industrials and consumer discretionary. The chart below shows the performance of the sectors since the high of the S&P 500 Index on June 2, 2009 - a relative pattern as one would typically expect during a corrective phase.

defensive-pica

Source: StockCharts.com

The key moving-average levels for the major US indices are given in the table below. The S&P 500 Index yesterday breached the key 200-day line (for the third time in 26 trading days), joining the Dow Jones Industrial Average and the Dow Jones Transportation Index in bearish mode. With the exception of the Nasdaq Composite Index, the indices are also all trading below the 50-day moving average.

Click here or on the table below for a larger image.

defensive-pic1

Additionally, the Dow Industrial Average and S&P 500 Index also yesterday broke through the "neckline" of a head-and-shoulders formation - a bearish event. For more on this, key levels and the most likely short-term direction of the S&P 500 Index, Adam Hewison of INO.com prepared another of his popular technical analyses.

Click here or on the chart below to access the short presentation.

defensive-picb

Turning to Richard Russell, 84-year-old writer of the Dow Theory Letters, the excerpts below cast light on how he sees the lie of the land.

"I've repeated the bearish factors so many times that I hardly have the energy to go over them again.

• The Lowry's studies indicate steady deterioration in the strength of the stock market.

• On top of that, we have the still-operative non-confirmation by the Transports.

• We have the overvaluation from the standpoint of Dow and S&P dividend yields.

• We have the recent breakdown of the Industrials from a head-and-shoulders top formation.

• We have the Dow graded as bearish (it's below 10,725) under the 50% Principle.

• We have NYSE volume tending to contract on days when the market is higher and expand on days when the market is lower.

• We have the market acting poorly in the face of 'brightening' business news and numerous Fed 'green shoots'.

• Above all, the primary trend of the market was last confirmed as bearish under Dow Theory.

We have the majority of analysts insisting that March 9 was the bottom of the bear market. Here I apply contrary opinion.

"'So how will this work out?' I ask myself. The market could just continue to sink with very little in the way of rallying ability, until the March 9 lows are tested and violated. The damn trouble with this market (from the bulls' standpoint) is that it shows no signs of becoming oversold, the Selling Pressure Index just keeps creeping higher, and the Buying Power Index continues to deteriorate. This is one nasty bear market if there ever was one."

The technicals undoubtedly look ugly, and investors will now focus on the second-quarter earnings reports as a test of whether stock prices have run away from fundamental reality. As Randall Forsyth said in yesterday's Barron's: "'Less bad no longer is good enough' has become the new market mantra."

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* Dr Prieur du Plessis is chairman of Plexus Asset Management and writes the Investment Postcards from Cape Town blog (www.investmentpostcards.com)

http://www.gold-eagle.com/editorials_08 ... 70809.html

[LordLindsey]

What is this trying to say, CSR?  I am INTERPRETING this to mean that things are going to get very bad for the "DOW" but this whole RIGGED-GAME is such bullshit at this point that I simply don't believe ANYTHING having to do with finances any longer.

The whole game is rigged, so why even discuss the financial system?  AGAIN...the "talking heads" ADMITTED that this is all a HUGE LIE, and the people did what about it.........


NOTHING   :lol:

LINDSEY

[scorpio]

The whole game is rigged, so why even discuss the financial system?  AGAIN...the "talking heads" ADMITTED that this is all a HUGE LIE, and the people did what about it.........


NOTHING   :lol:

LINDSEY

People are too busy drinking  cheap beer and staring at the glowing box known as Talmudvision. Things may start to change when enough 'middle class' people lose everything. Then, people might get angry enough to do something.... :evil:  

Scorpio11

[CrackSmokeRepublican]

People are too busy drinking cheap beer and staring at the glowing box known as Talmudvision. Things may start to change when enough 'middle class' people lose everything. Then, people might get angry enough to do something.... :evil:

That right. I call it the "40,000,000th TalmudVision Cheap Beer Drinker Effect", it is similar to the 100th Monkey Effect but requires many millions more
suffering from Jewish Banking Scams.

I just wanted to give a heads up to people "playing" the markets. Usually there is a few months delay from a Market Peak/Bottom and some new Scam. I just hope that if someone is invested in this Bear Market Rally that they keep an eye on the exits.
Anyway L.L., another major downturn in the Markets will signal another major round of Job cuts. This is what I'm most concerned about.    

[LordLindsey]

Thanks for the input, CSR.  My main point is that it is a FACT now that this entire market game is RIGGED, so whatever is said means nothing to me any longer.  I understand what you are saying about the INCREASED loss of jobs due to this, but CSR, it's over ANYWAY in our nation--and across the world.  The money is gone, the game is rigged, and until the PEOPLE realize that there IS and end-game to this, what else can I say?

LINDSEY

[CrackSmokeRepublican]

Thanks for the input, CSR. My main point is that it is a FACT now that this entire market game is RIGGED, so whatever is said means nothing to me any longer. I understand what you are saying about the INCREASED loss of jobs due to this, but CSR, it's over ANYWAY in our nation--and across the world. The money is gone, the game is rigged, and until the PEOPLE realize that there IS and end-game to this, what else can I say?

LINDSEY

Well, I kind of hope that at sites like this we kind of figure out what comes next. Yeah, the markets are rigged.  
But they will scam up a "new" idea if we don't stop them.
I kind of think of this time period as similar to the USA in the 1894 when the US was technically Bankrupt at the hands of JP Morgan-Rothschild and the US government floated bonds to the Jews in Britian.  The POPULISTS screamed at the Jewish Wallstreet Ripoffs that had taken place. Well, the Jewish Banking Scammers saw what the POPULISTS wanted -- Silver currency issued by the US govt. into circulation to compete with Rothschild Gold control.  The Jews took ALL of the Populists ideas for a Central Bank for the people and created the Jewish Federal Reserve in 1913.  Scams based up scams.  The Populists were actually some of the first REAL ECONOMISTS in a practicing what they preached.  Looking forward, clearing debt is no problem as long as you clear out the idiots that created them.  

As for the End Game, it is better to go to down fighting these bastards than to expect them to take better care of people.

We are entering a time like a great Russian Novel like War and Peace or Dr. Zhivago:

the plight of a man as the life that he has always known is dramatically torn apart by forces beyond his control.

and Beethoven's Moonlight Sonata 3rd movement is playing in the background.
High times to lock and load.