Just Three Charts

Tyler Durden's picture

With today's biggest drop in stocks in over 4 months, we are reminded of three recent charts that raise considerable questions as to the path forward. From Mclellan's 1928 analog to Hussman's bubble trajectory and the extremes of bullish sentiment, this week marks a 'line in the sand' for bulls to take this to the Hendry moon or for it not to be different this time...


Mclellan's 1929 Analog...


Hussman's Bubble Trajectory...

Based on the fidelity of the recent advance to this price structure, we estimate the “finite-time singularity” of the present log-periodic bubble to occur (or to have occurred) somewhere between December 31, 2013 and January 13, 2014.



And the Market's Most Bullish Bias On Record...


Is it any wonder there are less BFTATH-ers left?


Charts: John Hussman, John Mclellan, and @Not_Jim_Cramer

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NoDebt's picture

That's so perfect that it won't happen.


Hippocratic Oaf's picture

DOW will recover over 100 points in the last 10min


AllThatGlitters's picture

The earlier spike in gold reported on Zerohedge is getting even more spikey:

Live Gold Chart: http://www.pmbull.com/gold-price/

Is spikey a word?

flacon's picture

This is by FAR the worst day of this ENTIRE YEAR! 

knukles's picture

Time for a quantum leap in Schrodinger's wave to a linearly assumed single point arrival at weightier levels.
Californium life span like.

And if that were not enough, A-Rod's gonna be wishing he were back in Madonna's arms for the next year.


Oh them negative T-Bill yields.
Is it a flight to quality, shortage of collateral, both or none of the above?

onewayticket2's picture

"Mortimer, err, Janet....get in there and BUY!  BUY!  "

BLOTTO's picture

If you follow the Julian Calendar...today is New Years Eve.

eclectic syncretist's picture

Just wait until JPM and WF report before the open tomorrow morning and then give their 2014 outlooks.  Then the rush to the exits will begin in earnest.  The writing is on the wall for anyone who cares to read it.

TeamDepends's picture

Though I walk through the valley of the shadow of death I will fear no evil, for thou art with me.

Pure Evil's picture

Nothing to fear folks.

Ole Mellon Headed Yellon will save the day.


(Has anyone else noticed that Yellon's head looks like a ripe mellon of the Honeydew variety?)

Compare here.

derek_vineyard's picture

his log chart has the dow only 2000 points over-valued.  he must be a bull.  look at the chart!

Four chan's picture

the banks will smash their earnings of worthless fiat as usual.

after all how hard is it to create return, when your product is supplied for free

courtesy of zirp, it's created out of thin air, and all your customers have been brainwashed

sufficiently, to trade their precious lives for your nothing. no longer able to see the master

has on no clothes.

GetZeeGold's picture







Surveillance! When you absolutely want your entire life to be an open book.

akak's picture

Did you ever notice that the word "bitcoin" can be rearranged to spell "it bi con"?

Dick Buttkiss's picture

Which is Latin for what?

TeamDepends's picture

ad praesens ova cras pullis sunt meliora ad quem ad quod
Eggs today are better than chickens tomorrow

GeezerGeek's picture

Perhaps we need to adopt a different perspective. For instance: Chickens are what eggs use to create other eggs. 

LooseLee's picture

'Dick Butkus' The most ferocious LB in NFL history and one of my childhood heroes. This bear is gonna do a Dick Butkus head-in-chest arm wrap plow-you-into the turf tackle on the bulltards before this is over. Butkus would be ejected within the first qtr. based on new rules, but he epitomized the basic 'tackle' to perfection.....He is the GOLD standard and SILVER lining of what used to be 'Pro Football'!!!

OutLookingIn's picture

If you follow paper...

Then... TIMBER!

Look out below!

Oldwood's picture

I wasn't paying attention...do we buy the fucking dip now?

SheepleLOVEcheddarbaybiscuits's picture

Pathetic that ZH continues to pump out the same perma bear view. Meanwhile S&P up 32% last year.....

css1971's picture

Seriously people, screw the calendars. The real New Year's eve was 21st December.

SAT 800's picture

It all depends. I'm making money on my S&P500 contracts shorts; so I don't see what's wrong with today. Of course I did lose $4,000 on my Bond position when it stopped out; but no matter, my GBP shorts and maybe S&P, shorts, will cover it with change to spare.

Pure Evil's picture

"Is spikey a word?"


Only if you have an extremely large goldmember.

johngaltfla's picture

"Spikey" is Latin for "assfuckingapproaching" usually only used in the vernacular.

Pure Evil's picture

Usually by those with elephant sized goldmember's.


When size truly matters.

Al Huxley's picture

Not today, I don't think.  Today would be a bad time to BTFD.

eclectic syncretist's picture

Looks like Fed money-printing taper is happening/continuing come hell or high water, and earnings outlooks are setting up to be far from rosy.  This is likely the start of the sell-off everyone here has been calling for the past few years.  If you believe the Fed runs the show, they are very transparently telegraphing that the freebies are rapidly running out and anyone who cares to listen better adjust accordingly or get steamrolled again. 

The Fed and banks take it up, then run it down.  Now we go down.  This is the year.  When bonds and equities both are sells, where does all the counterfeit slosh to?  Commodities and hard assets, that's where.  This is just the start.

disabledvet's picture

entire countries have been wiped off the map. including Detroit. "and we got a mid sized pick up truck" after 100 billion. this is America...not Venezuela. Who these clowns think they are is beyond anything I can imagine. "Get to work"? Yeah...right.

therevolutionwas's picture

We will be working for those who are buying everything.  The Chinese.

Hippocratic Oaf's picture

Yea, looks like 100pt robot-rally didn't happen......Bob Pissonme said BTFD!!!

flacon's picture

It's 3:30pm... Buy this dip? /joke

MsCreant's picture

The dips running this market are known as the Fed and I think they have been bought already.

BeanusCountus's picture

Really hoping you make a few $$$ on your puts here.  I wish I had some.

Sudden Debt's picture

I just needed one more push to put 5k in a dow put and than you blew it :)

SAT 800's picture

You have to learn to sell highs and buy lows. And never, never, regret the past or try to blame anyone.

XAU XAG's picture

1928-30 dow chart


looks like gold chart 2011-2013

tempo's picture

Get use to the boring, frustrating small trading range of +/-5% for all of 2014

JuliaS's picture

Presenting, the Bitcoin chart for 1929:





rosiescenario's picture

It is so perfect that everyone, such as yourself and 55 others here believe it will not happen....and we know what that means.....

Bokkenrijder's picture

You can see that the red line overshoots the black one by a little bit every time, so as a total investment amateur, I'm guesstimating that the DOW(n) will hit 17k (March-April) before it crashes... :-P

Tsar Pointless's picture

This time=Different. Though, eventually, this time's time will be up.

Nothing lasts forever but the Earth and sky. All your money, won't another minute buy.

Dixie Rect's picture

Insert MDB quote here: