Chart update

 

Time for change - this very long term model which is giving out WARNING SIGNAL....and it has been good before though it takes some time (and P&L pain) to get there...

 

Kind of interesting to check this chart out - the signal? Lower rates tracks stocks......lower - and this is the key part of the present malaise: Low rates for extended time is function of economy not allocating correctly - maybe it is absolutely perfect timing the Nobel prize in Economics was given to 'search theory' markets which does not clear out!  (Nobel Prize interview)

 

Gold - ETF- GLD: looks like to possible correction - Gold, although not a bubble yet, is clearly overbought and overowned by spec-society.

 

My biggest position - time to take profit? CPI later this week?

US Dollar likewise - QE2 has been priced in at 2-3 trl. US Dollar already - recent local Fed speak indicates it is still going ahead, but both the impact and size is still being discussed....

 

Unusual for a Tuesday there seems to be some early sign of RISK OFF post the Chinese reserve requirement increase, also watch for Foreclosure Gate to hit the banking sector - its a big mess getting worse....


Winston