From Chart of the Day:
Comments:
Notice the rapid rebound in earnings after the 2008 low.
Since that time:
Companies have trimmed expenses.
They have cut staff.
They have paid executives bigger bonuses.
So, my question is this:
Where is the next driver for earnings going to come from?
When:
US "growth" is slowing.
Europe is in turmoil.
Incomes are stagnating.
China is decelerating.
Sovereign debt is expanding.
Consider the following chart of the Semiconductor index, generally thought to be a good leading indicator of future market movement:
Notice that Semis have broken through the 200 day MA.
They are below the bottom of the Keltner channel.
The 4 day EMA has crossed outside the bottom of the Keltner channel.
These are very bearish indicators.
Got cash and gold?
Comments:
Notice the rapid rebound in earnings after the 2008 low.
Since that time:
Companies have trimmed expenses.
They have cut staff.
They have paid executives bigger bonuses.
So, my question is this:
Where is the next driver for earnings going to come from?
When:
US "growth" is slowing.
Europe is in turmoil.
Incomes are stagnating.
China is decelerating.
Sovereign debt is expanding.
Consider the following chart of the Semiconductor index, generally thought to be a good leading indicator of future market movement:
Notice that Semis have broken through the 200 day MA.
They are below the bottom of the Keltner channel.
The 4 day EMA has crossed outside the bottom of the Keltner channel.
These are very bearish indicators.
Got cash and gold?
Comments
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