Part 1: The S&P 500 (but first we need to go around the world ….)
Since I’ve started a financial blog a couple weeks ago the response has been wonderful. THANKS … I have had multiple inquiries into doing an analysis of the equity market in the US. What I’ve tried to do is go thru 3 out of the 4 components of the circle of life (fixed income, commodities, FX) and show the larger macro view has played to a pretty well defined script. I have held off doing the equities because I’m trying to put the pieces of this puzzle together.
WITH FULL DISCLOSURE, and you will expect nothing but that from me, I HAVE TRIED MULTIPLE TIMES TO SHORT THIS MARKET AND HAVE BEEN DEAD WRONG ON THE DIRECTIONAL MOVE OF THE US STOCK MARKET. I STILL REMAIN A BEAR, BUT MY WOUNDS ARE NOT DEEP ENOUGH TO THROW IN THE TOWEL. So, unfortunately, I might bring some bias to the following couple of posts, however, I have spent the past couple days bringing out my eraser, licked my wounds and pride, and have methodically worked my way thru a ton of charts…trying to withhold a bearish bias I am objectively just looking and explaining what the charts are telling me.
The charts below are ETF’s of some of the worlds largest and, some could argue, important exchanges out there …the cliff notes of these charts is as follows:
CONCLUSION: since the top in 2007, none of them have made new highs, unlike the US Equity Market. Why?