*click to enlarge
After yesterdays rant about how we've been bent over litterally by the establishment and how the IN CROWD is laughing their asses off at us all, how they got away with stealing our money and futures of our children, how they got it so hardly anyone can figure out what happened....and how no one that knows can be made to divulge anything.....until it does, none of that enters into direction of the stock market. In fact back in 1997 is really when economy peaked, but you know what happened to stock prices next 3 years!
Last word, main difference IMHO as to NOW and THEN is that we had MAJOR segments of our economy we could goose, and had room in our home equity lines, debt to GDP ratios and such we could continue to spend spend spend.....at some point friends, we MUST take a breather and head back to historical norms in lots of places....I think THAT part has begun...how it plays out in stock prices is another thing, if indeed, as is proven in NAZ (more than 50% from 2000 highs), NIKK (70% off highs of 20 years ago), DOW (lower than 10 years ago) we can go thru extended periods of poor market performance, IMHO this is SECULAR BEAR TREND.
SINCE we broke PREVIOUS BEAR 2002 LOWS, this tells me better than EVEN chance DOWN the road, we at BEAR MINIMUM test the lows if not better them.... for now the above chart speaks for itself....I have noted the divergences with other markets, like Shanghai....so some of this BEARS watching and ESPECIALLY the correlation between US STOCK prices and the U S$.....at 3% left loving the dollar, door is open for a MAJOR RALLY NO ONE EXPECTS...this should correspond with a MAJOR correction of the rally from MArch, IMHO
not too many boo hoo....as I said for a period, fundamentals get trumped by action....and action generally has been very bullish....
Duratek
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