Peak Earnings?

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?


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