The Most Important Chart To Consider For The Weekend (Or Tom Lee's Nightmare)

Tyler Durden's picture




 

Sometimes, it just pays to keep it simple stupid. At some point, the dismal economic reality of our post-credit-creation-miracle boom world will reassert itself in asset prices. The catalyst may not be obvious (like a close-election reminding a nation of sheep just how divided we are as a people and implicitly as a political class - and what that means for our future fiscal probity); but it is coming. 'Cycles' cycle; the Fed has fired its bazooka; and OMT omnipotence is in doubt;and the only way we get 'moar money' from our central planners is if their hand is forced by a reversion to reality...

 

 

US economic data may be surprising to the upside (of economist's expectations - weighted by what is clearly now the most bullshit pre-election datasets we have seen) but as we have said before - there is no decoupling, it is lagging and leading behavior (combined with the normal pre-election upward bias of hopium in sentiment). The chart above makes it clear that while some have seen positive moves by US-specific macro data surprises, the rest of the core international economies are doing decidedly badly - and US equities remain ignorant (for now).

 

(h/t @Not_Jim_Cramer)

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Fri, 11/09/2012 - 21:07 | 2966790 putbuyer
putbuyer's picture

Nonsense. Without charts all is blind. I have never been wrong. Listen to the trees...

Sat, 11/10/2012 - 00:21 | 2967132 Pareto
Pareto's picture

oh yeah they do.  check out the SLV, as an example.  perfect fibonocci retracement.  a thing of beauty actually.

Fri, 11/09/2012 - 20:15 | 2966648 Tom.the.Bomb
Tom.the.Bomb's picture

because I love ZH

 The best conversation in human history !

http://www.youtube.com/watch?v=CVBYwntkiFA

 

Sat, 11/10/2012 - 00:18 | 2967127 Pareto
Pareto's picture

+1 for the seriously needed gut chuckle.

Fri, 11/09/2012 - 21:34 | 2966847 Dr. Sandi
Dr. Sandi's picture

 

the Fed has fired its bazooka

So is that the official 'Money Shot?'

(Technically, it would actually be a currency shot, I guess.)

Fri, 11/09/2012 - 21:53 | 2966886 ebworthen
ebworthen's picture

What's reality again?

I have a dim memory of it; though it sometimes surfaces when I buy food and gas.

Fri, 11/09/2012 - 22:04 | 2966894 lynnybee
lynnybee's picture

i'm ready, too !   i have nothing in the market, i listened to my grandma years ago.   i have nothing in banks.   everything i own is held outside of the banking system, like FELIX ZULAUF said to do.    but, i want to see this market go bidless & get it over with just to be vindicated .    i'm the laughing stock of my friends & family, been screaming for 4 years to get out, get out , get out cause this thing is going to DOW 4,000 ..... i'm still a laughing stock.   

Fri, 11/09/2012 - 22:08 | 2966916 hustler etiquette
hustler etiquette's picture

the charlie indigo alpha can just redirect the loot from cocaine sales into the market too

Sat, 11/10/2012 - 00:10 | 2967118 Money Squid
Money Squid's picture

Pump the market like to cheap ho until the election is over then bet it colapses then let it collapse.

What the surprise?

Sat, 11/10/2012 - 02:35 | 2967312 Grand Supercycle
Grand Supercycle's picture

WILE E.COYOTE update:

SP500 head & shoulders formation on daily chart continues.
SP500 weekly chart also shows likely head & shoulders.
DOW monthly chart shows bearish rising wedge.

The current bearish price action comprises the first installment of the very overdue Wile E. Coyote sell off.
As mentioned, the previous SPX meltup - devoid of healthy retracements - has caused the coming crash.

One can only stretch the bungee cord so far before it reacts...

http://trader618.com
http://tinyurl.com/ZH-Forum

Sat, 11/10/2012 - 07:49 | 2967429 q99x2
q99x2's picture

Snapdragons: my favorite flower.

Sat, 11/10/2012 - 13:36 | 2967808 geewhiz190
geewhiz190's picture

what is the chart's source?

Sat, 11/10/2012 - 18:20 | 2968586 DowTheorist
DowTheorist's picture

The stock market is right now in a very difficult juncture. While still in a primary bull market (notwithstanding the current secondary reaction), there is inminent risk that a primary bear market signal is flashed.

 

Here you have the details and how to spot the bear market in a timely manner:

 

http://www.dowtheoryinvestment.com/2012/11/dow-theory-special-issue-is-p...

 

 

Sun, 11/11/2012 - 00:59 | 2969218 ZFiNX
ZFiNX's picture

The amplitude of the red line increases with each oscillation, it will easily catch up in tandem with S & P 500 on the next rally; which appears imminent. I see no problem here.

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