I Smell A Rat

The markets continue their rise inexorably these days - with the exception of today's small pullback.

But there is something lingering in the air, a smell that is not quite right, what is it?

Consider the almost 30% correction in the Dhaka SE:

And consider the S&P 500 in the last month:

There is something too neat and tidy about this rally.  Check out the extreme RSI and Slow STO.

I think I smell a rat.

Will emerging markets spread a contagion to developed ones, or is this forecast a bit early?


  1. Great Post P.W

    Very Obvious something is happening, when time allows could you elaborate further on your thoughts on this situation and are you Short or sidelined.

    Personally other than a few Miners position and Bullion I am watching the show from the side as well.

    Yes I too am missing the ( Cough ) Great Global Bull Market ( Printing money ) I just don't feel the reality of it.

  2. >>There is something too neat and tidy about this rally.

    If you see small climbing bars its a good sign of upward momentum, which has been going on for some time now one of the reason's I've been long for a while now. If it breaks the momentum, time to get out :-)

    In fact thats what I exactly did with gold (spot) contracts, XAUUSD made a triple top Jan 3. So far took out cool 20G, leaving some to run at break even. If it goes above my break even will add to long position

    After Dec 15 ... (Sorry can't say that proprietary software but its all in the charts)


  3. Good for you Walter, that is a tidy profit.

    I am mostly sitting on the sidelines looking for the right opportunity. Have my eye on some gold juniors, but not quite yet.

  4. Thank you for your comment Bill.

    I am mostly sidelined now. Waiting a bit before I go short. Watching patiently......

  5. PW,

    Do you ever look at USGS Mineral Industry Surveys publication ?


    Shows some interesting numbers.



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