Friday, September 12, 2014

Watching A Slow Moving Car Crash

If the video doesn't play, try this link and you will find yourself cringing while watching this 2 minute video. I almost died from second-hand embarrassment.

You know what else looks like a slow moving car crash? The US stock market. I said it before, I'll say it again.

John Hampton is the bomb when it comes to teaching prudence based on historical evidence.

1) Advisor Sentiment (II)
2) Rydex Bull/Bear Fund allocations
3) NAAIM Equity exposure
4) HYG:TLT divergence (I personally think HYG:IEF is a better indicator)
5) CBOE Skew
6) Q-Ratio
7) Household Equity Allocation
8) Margin Debt

9) Sornette Bubble
10) Solar Maximum

While I do find extremely compelling evidence in his first 8 mainstream indicators, I am of course skeptical of his more "exotic" indicators of the Sornette Bubble and the Solar Maximum.

However, even if you exclude those 2 indicators, the first 8 indicators argue for an extremely compelling case that the end is nigh, and has been warning so for quite a while.

We will never know the future about the stock market, that is for sure. But by us knowing the past and being able to assess the present, we are able to make better decisions concerning the future.

S&P 1989.43 #timestamp

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