Tech somewhat, Dow 30 mostly, CONSUMER staples stocks like above, been batered....FOLLOW THE MONEY and that is not into OIL or GOLD IMHO
I suggest this will reverse, butnot until after NOV elections. NO OCT selloff lows? doesn't look like it, a test of 1326 SPX coming.....I also suggest not much fun until AFTER wed FED meeting.
FED leaves rates ALONE, won't this cause another FED IS DONE JIGGY WALTZ?
bears taken out to woodshed capitulate (many have).....normal bull in NOV is turned upside down as bulls turn to get spanked as DEM"S storm into majority as electorate THROWS out any Repub in BROAD LOUD message to imposter GW BUSH..take it to the bank!
L is sitting a smidgen away from broader buy signal, DOW is smidgen away from ALL TIME HIGH, but as we move ionto NOV/DEC, the MACD divergence will continue after over 2 1/2 years along with broad market non confirm like TRANSPORTS, as what WAS hot is not in a chase the donkey market, what appears unbeatable is a a mirage of chasing mkt for performance....with one leader PUNCTURED after another.
PLUNGING energy company profits, and slowing SPX earnings growth will be perfect setup for dissapointment, and a major bailout into JAN 2007 from this mkt.
Housing does not recover, continues to correct, finally job losses are counted.....worry shifts to slowing economy.....momo's bail leaving weak handed bag holder lemmings.
SPX energy has been main driver of historic earnings....has it not peaked?
PLUNGING commodoties have not yet broken Bond support levels, rates could begin to rise toward 5% again. Mortgage payments are reset. consumer confidence is FAR below historic peaks.
INcreasing cost to employers of workers in conjunction with falling productivity (should this continue) puts a HUGE damper on corporate profits.
Ford, INTC andmany other companies are forced to SHED workers to prop up earnings, same old 2000 song, see home builders etc do this en masse. GOOD money used for stock buybacks instead of investment, leave the US barren in any attempt at being competitive worldwide. Foreign suppliers have been MAIN beneficiary to the Consumer Spending BUBBLE unleashed from reckless FED policy.
With more talk of soft landing and willingness of speculators to bottom fish Home Builders, more trickes await than treats in the near future.
When BPSPX breaks support at 48 we will know for sure, it is also just underneathe downtrend line.
CAVEAT? is previous posts chart showing little adj monetary growth........tells me it better begin expanding or market will reflect this and maybe PPT and GS propping market in attempt to save BUSH
Duratek
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