Remove the FED fueled financials, remove the momentum stocks with no earnings, remove the much loved public high tech stocks and what you have left is the real economy in an index known as Morgan Stanley Cyclical Index. When this breaks a Gann Angle reader want to know about it.
Here we see the !MCYC moving up well along the red 1x1 Gann angle. Buy the dip is working, when it does not, then you know the wider market is expecting trouble. One to watch!
Most Asia markets have a similar pattern to the Australian All Ords (!AORD). The look like hope, but really they are just an upswing in a bear market. But this does not mean we don't get a Christmas rally, but it does mean the New Year may be a little rough. I hear you say, China is picking up, yeah right! Asset prices are running hot on FED juice, and the question how much higher can prices go with out earnings supporting the new all time highs. (ie P/E ratio)
"I believe that uncontrolled basic emotions are the true and deadly enemy of the speculator. That hope, fear, and greed is always present, these emotions sit on the edge of the psyche, waiting on the sidelines, waiting to jump into the action." ~ Jesse Livermore
"Money couldn't buy friends, but you got a better class of enemy" ~ Spike Milligan