Thursday, October 14, 2010

Something wicked this way comes

I just have to post this chart.  The market last topped in October, 2007.  But look here, the financials as represented by XLF, peaked in February, 2007:

XLF Weekly Trend Model

This year,  XLF reversed SHORT in May and remains SHORT, although a little underwater as of today. But as shown on the above chart, the SHORT signal of early 2007 was also underwater for several weeks before the XLF came crashing down with a 71% decline.

Another omen that something wicked this way comes.


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