Riding The Gravy Train

Beating the markets is fun and profitable. This is how we do it.

Saturday, February 16, 2013

Market Update


It continues to look as though a material top is forming, and typically the longer it takes the harder the subsequent fall.  Below is a chart that shows that the 13-day average between highs and lows is matching the lows of the past few decades.

Normally after this happens there is either a massive rally or decline in the stock market.  It's tough to imagine a massive rally at this stage.

 
 
The next chart shows margin debt at extreme highs.  Typically this precedes a big drop in equities.
 



Anecdotally, economic indicators appear to be decaying globally.  For one such anecdote, consider "Wal-Mart has said sales this month have been a “total disaster”, according to leaked internal emails."




We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the positions we do, or for mentioning any positions or companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

Please presume that we, she, he, I, it, them, they, us and you are purely fictional characters and that everything written in this blog is satire intended for comedic amusement only and not to be taken seriously in any way. Just like "real" analyst proclamations. Thank you.

To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated, not if a blog entry only contains general commentary.