Some Perspective

Markets have this thing that they do: they go up for a while, then they go down. On the face of it, this is no problem, UNLESS- when they go up, they don't go as far or as fast as when they go down! When the bears have the ability to move the market more than the bulls, that's the making of a bear market, folks.

That's the reality, stripping away all the rhetoric and piles of BS spewing from the likes of our beloved politicians and the financial news media.

My point today is simple, and I'll make it with a weekly chart:



If you ask me (as nobody is, point of fact) the bears have been much, much more potent than the bulls this summer, this late summer demi-rally (more a recovery from the lows really).

Also if you tend to watch stochastics, as I do, NB the weekly slow stochastics are actually getting overbought now; just as all the government officials and media are sounding the all clear! Jim Cramer is yelling at everybody to buy with both hands. The criminals are running the show...don't forget that.

Bottom line, if the bulls can't take out the summer highs, they've lost. If the overall market gives way around these levels, it could very well be another bloodbath.