Low Defended 3 Days in A row
On a short-term basis, we were sure on Thursday that the market was carving out a low as we had two days reversing to the upside off of monstrously significant support areas. By 10 AM Friday, we thought we were idiots. By the close, we think we got the short-term low correctly.Notice the words short-term. We don’t dare go further than that as our motto is don’t blink. We just think that just like our call on August 25 for a low, we are getting another low which could potentially be more important because the lows were retested.Keep in mind, it is too early to talk leadership as we are just getting a potential turn. If it is for real, we will be able to report more and more areas and more and more names showing up. Of course, on the other end, if distribution shows up, we will make note of it…and of course if we ever break the August lows, get out the pitchfork.
Other thoughts:That’s three days in a row of positive reversals indicating a major defense at the August lows. We suspect we can rally up into moving averages but don’t forget, massive overhead resistance lies ahead.China markets may be turning the corner. Stay tuned!
We saw a few oil stocks turning the corner. Stay tuned!
At the highs everybody was giddy. Froth and speculation pervaded the air. Now we get calls for 5,000 Dow, October crashes and depressions. Many strategists have finally lowered their targets for the year. Sentiment has changed.We couldn’t care less why but one should leave no doubt the decelerating economy means easy money continues and fat chance the Fed raises rates. Europe is printing. Japan is printing. The UK is printing. China is easing. 0% and negative rates remain around the globe.As far as the fake jobs number, if the labor participation rate stayed steady, the unemployment rate would have been 5.3%. If the labor participation rate was back to where it was when Obama became president, it would be at 8.5 to 9%. We have called the Labor Department to give us a list of all these people who have left the labor force. They said there was no list…just calculations and formulas. Now that’s funny
RE: Your last para above>My wife and I both left the labor force in late 2010. My IT job, along with most of the domestic IT support positions in our major US oil company, was relocated to the Philippines that year. My wife had been a career employee for our County in MN, and was transferred to the County Work Force staff to process benefit claims during the economic collapse. By the end of 2010 she was totally burned out and took early retirement..We are the leading edge of the Boomers leaving the labor force.
Gary;
Think about this. People who own guns are worried about how to get fair value for their guns if the government should take them like in Australia. The average gun is worth $500 and is an appreciating asset. To get our guns the government would need to pay a fair price to get them from the citizen. Now, you know the government will not offer a fair price, so where do I sell my gun? Could this be a business opportunity? The business would buy guns and sell them to customers willing to pay a bigger price. The customers could be offshore or clandestine.