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Signs of Future Market Weakness Beginning to Show
Bernanke has massively increased the monetary response in an attempt to halt the secular bear, and we know how the last attempt to control the market turned out – we got the second worst recession since the Great Depression and the second worst bear market in history. I fully expect the next leg down in the secular bear market to be even worse that the last one – not only in the stock market, but also in the economy. Words: 525
So says Toby Connor (goldscents.blogspot.com) in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited […] below for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. Connor goes on to say:
Greenspan already proved that you can’t meddle in the market without eventually causing bad things to happen. Unfortunately, [however,] Bernanke doesn’t seem capable of learning that lesson and has now made the same mistake again only on a much larger scale. I’m confident it will only lead to a much larger collapse in the end. [The stock market] will almost certainly dip below the `09 lows at the next 4 year cycle low, probably in nominal terms and certainly in inflation adjusted terms.
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Once the impending intermediate degree correction runs its course we will get what I believe will be the last rally in this cyclical bull market [which may] make marginal new highs before rolling over into the next leg down in the ongoing secular bear market. I expect by this time Bernanke’s insane monetary policy will have spiked inflation high enough to collapse the economy again and the global stock markets will begin the trip down into another devastating bear market. [Below are several indications that such is beginning to unfold. Take a look.]
1. The McClellan Oscillator is now showing a large negative divergence.
2. a) The advance/decline line is beginning divergence for the first time since the cyclical bull market began.
2. b) The market is entering the final topping process of this cyclical bull.
I think that is probably the case here also, as I think we are already in a very large topping pattern.
3. The next four year cycle low for the market is due sometime in 2012.
Conclusion
They won’t be calling [the coming market decline] a Great Recession. They will be labeling it by its true name:
The Great Market Depression of 2012!
*http://goldscents.blogspot.com/2010/12/bad-breadth.html
Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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Market
No need to worry,
As long as Bananas price drop from current price of 69 cents/pound to 19 cents a pound and all other commodities follow in the same way we’ll be fine….