Thursday, April 29, 2010

CLEAR BREAKDOWN

Overnight prices fell another 1% (not updated in chart yet)
We've been monitoring CHina as it is chief agent in the "reflation trade" and as you can see this bearish wedge pattern has busted loose with a clear test of the underside (break) and now it's falling away. Pattern of higher lows is now broken.
#3 world economy appears to be in some distress and may already be in a BEAR MKT.
This is cause I keep reading

"SHANGHAI'S stock market dropped to a five-week low yesterday, breaching the 3,000-point mark, on concerns that measures will be tightened in the near future to curb inflation risks."

Futures are green this AM, pattern of reversing trend after FED meeting? (stocks were up a bit WED)
How balanced is an economy that gives you NO CHOICES for safe gains? 0% basically for savings even though most Americans want to pay down debt and do just that?

There are systemic risks in the world's economies and recent market drama was just a subtle reminder. A perfect Polyana World is depicted, to me a peversion of reality.

Home valuations don't support spending, wages are flat don't support it, sentiment doesn't, unemployment doesn't, credit is contracting....bank loans outstanding contracting.....where is the backdrop for the new economic expansion? Jobs at 8:30 @briefing.com (calenders/economic)

Duratek

No comments: