US Stocks: The System is Blinking Red
The party is coming to an end folks. The housing recession (soon to be depression) has already spilled over into the economy.
The Home building stocks began their bear market after peaking in late 2005 and now the financials have joined the party. The transportation and retail stocks seem poised to follow.
Bear market psychology is here. Social mood has already shifted. CEO’s are being ousted, Wall St. salaries and bonuses capped, and the public is losing trust in the financial system (reporting methods, insurers and ratings agencies.
What bear market or economic depression would be complete without a scapegoat?! I’m not quite sure whether we’ll blame this one on Mexican immigrants taking all of our lucrative gardening jobs or those dam Chinese who loaned us the money we used to refi our homes into foreclosure. It will be one of the two—BET ON IT!
Of course, the true culprit is the federal reserve system and government overspending, but I doubt you’ll hear much about that on Bill O’Reilly’s very informed TV show (I’m not a follower).
Contrary to what we’re hearing from Washington, the housing collapse is not contained. This crunch is a crisis. The dollar is in a free fall and a recession is eminent, if it hasn’t already begun. Though I think this one will be more reminiscent of a depression. A major depression.
Two Year Treasury Yield Signals a Recession
In Terms of REAL MONEY: The Dow Jones Made a New Low Recently
It’s Peso Time!
The Sub Prime Currency
Dow Theory Watch
Transports Confirm Sell Signal.
Head & Shoulders Top
13 & 34 Exponential Moving Average Cross
Breakdown of Financial Sector. Market Crash Should Follow…SHORTLY
Banks
Our U.S. Banking System
Brokers
The Brokers: A Leading Stock Market Indicator
Home Builders
Still Falling
Retail
…It’s just a matter of time
The wheels are in motion. Hang on. It’s going to get bumpy. Real Bumpy!
[...] Original place by Charting Stocks [...]
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Hey Mark read this, a clear sign of imminent economic collapse.Make a mental note on the falling dollar..unbelievable.Everything we just talked about is right here.
America is in denial.
Its a little tough to argue your charts. 2008 will be interesting, given that according to the 2008 Traders Almanac, the “8’s” have historically returned 18% since 1888.
I would expect to see the markets trade higher for the first part of the year, and then the pain will start as we head into the election. Whoever wins the presidency will have a lot of economic issues to worry about. Low US dollar, a recession and a Fed that isnt sure what to do.
Not fun.