Last Wednesday I called a bottom (why not? everyone else is 
)
I was visiting a friend near Dal, and baldly stated that the bottom was 6 weeks out. That would make it a bit more than 5 now. I’m not completely sure why I made that assertion, basing it consciously on the staggering wave of happy-chat coming out of high authorities lately, like Bernanke recently uttering that the recession was likely over.
Anyway, last evening I invited sidebar readers to the Google News Homepage and directed their attention to the indexes chart at upper right. Overnight, I’ve come to realize that I’d sensed a bump through my toes on that one. The signature will still be there for another 2 1/2 hours, but here it is for your inspection after that.
What this means is that the algo trading community has now achieved nearly perfect correlation across diverse indexes. If I understand the message of the students of emergent behavior that look at ant armies, this means that the micro-level has fallen almost perfectly still; and that implies, by a simple application of the principle of entropy, that we are about to experience an event at the macro level.
I sang tenor at our local church choir with one of the Springhill orphans (he was a founding member of the Tattoo Adult Choir, among other achievements). These sorts of things do indeed pass.
Northern Virginia Housing Bubble Fallout
Mish's Global Economic Analysis
UK House Bubble
Ohio Fraudclosure
Bubble Meter
Breaking News Relevant Articles© Copyright 2012 Housing Doom | Copyright© 2011, AuthentiCraft, Inc.
Moin John,
I also have the feeling that “something” is in the air…..
The herd mentality with almost no underlying volume has caused big big problems in the past….
Very difficult for me to stay disciplined to not short the market or certain sectors….
I think the market wants desperately to see DOW 10.000 …..
Wouldn´t surprise me if this will mark the top…..
I´m as bearish as i was in 2007…..
This quote sums it up
Bob, ‘The Bear’, Janjuah via FT Alphaville
“I think balance sheets and sustainability – govt, central bank AND private sector,MATTER
If they no longer matter, I will be WRONG, and I will have to accept that the policy of ‘Print/Borrow/Spend on Rubbish we don’t Need’ is a limitless phenomena, without consequences, which means there should never be a bear market ever again….
I hope this sounds as ridiculous to you reading as it did to me when writing…..”
Top is going to be when the stimulus money runs out, more “to big to fail” companies come out of the woodwork, or when another large bank failure occurs.
But, that’s just my best guess.
Unemployment rate rising, ARM reset impending, late housing payment rates increasing, and the commercial real estate foreclosures are just beginning. Unfortunately, the bottom has yet to be hit…
Sorry for being dense, but what exactly am I supposed to be looking at in this graph?
The point is the identical shapes in the 3 graphs of different stock indexes for Monday. S&P 500 and the Dow spent the day locked together, and the Nasdaq’s market moves reflected the others’ so closely (about half a percentage point further up) that you could arrange a light on the pair to produce a shadow that would just about cover the latter.
Obviously the equity names had lost their capability to move independently two days ago.
OK, but the stock market graphs always look like that for as long as I can remember. The 3 markets always move in sync.