Reply #3: Something BIG this way comes - WrapUp by Martin Goldberg [View All]

[ozymandius]

CHART FISSURES SUGGEST SOMETHING BIG IS ABOUT TO HAPPEN

Technical analysis is a game of cold calculations, not feelings and emotions. So if I were to tell you that something big in the stock market is about to occur because I feel it in my bones, it wouldn’t be the product of a technician – it would just be stray intuition. Yet there have been many fissures occurring in many technical charts over the last few weeks that may provide substantiation for my premonition. I don’t know what it is specifically, but it involves lots of debt. I feel it in my bones - something big is about to happen.

Fannie Mae

Following is a one-year chart of Fannie Mae. It dropped on that “little corruption thing,” and then recovered on relatively low trading volume. Now it is heading down again with a loss of momentum and a pick up in volume. Something big is about to happen.

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A leader in the homebuilder revolution – Pulte Homes - overestimates market prices in Las Vegas and then finds that buyers under contract are not coming to settlement. The homebuilder then lowers prices, including discounts for buyers under contract, and makes them sign a contract certifying that they are owner-occupying and not speculating for a price rise and quick turnover. The builder insures investors that this is just a local problem that should not impact other builders. Yet the stock drops and decisively breaks an uptrend that is over a year old.

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Something big is about to happen.

Eliot Spitzer is investigating the insurance industry. The stock is suggesting, “If you look, you will find.”



As a group, financial companies account for a disproportionate amount of the US corporate earnings. Yet in spite of a rallying bond market, the financials seem to be dropping precipitously. This is shown in the S&P percent bullish stocks (% with bullish point-and-figure charts). A leader of the last rally is suddenly lagging badly.

...much more and lotsa charts...

http://www.financialsense.com/Market/wrapup.htm