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Lots of Wreckage Still To Repair In S&P 500 (SPY)

One of my acquaintances (who’s not a pro) emailed me today saying “THE BULLS ARE BACK BABY!” He said he saw it in one of the headlines.

Besides the all caps faux pas, he’s a jackass. One day doesn’t make a trend. And China is the least of our worries at this point.

Big up day in the market, but the trend is still down. I don’t believe any of the “recovery” stories either. There are no jobs. November is coming.

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  • “Besides the all caps faux pas, he’s a jackass.” AWESOME!

    Yup, don't believe the hype.

  • irondoor

    Martin, I wonder if people have considered the fact that companies have likely learned how to operate and profit over the past 12-18 months with fewer employees. After the shock and fear of wondering if your company was even going to survive the economic turmoil, you are not exactly ready to increase your permanent overhead when there is still the continuing potential of a global de-leveraging environment that nobody managing today has any experience with.

    Remember, while a certain number employees is a necessity, they are still logged under the expense section of the P&L statement. The trick is finding, hiring, training, rewarding and keeping the best ones and culling the deadwood. The recent and continuing downturn has been an excellent opportunity to do this.

    As far as it goes, there is no “magic number” of % unemployement that will satisfy the politicians. Based on their words and actions, the only reasons for the existence of businesses are to provide paychecks to their constituents, taxes to fund their schemes and, of course, campaign contributions in order to get in line for either favorable tax benefits or government contracts.

    Any so-called “profit” after paying salaries and healthcare benefits is to be taxed away.

  • Jay C.

    my 2c.

    Overall, things don't look too good for for the SPY.

    1)The 10 month SMA for the SPX based on Faber registered a sell.
    2)Weekly NYAD (Cumulative) is showing a double top
    3)Weekly MACD's for major indices show a crossover to the downside.
    4)Technical Damage done on the monthly charts for the major indices.

    Given that we have got our mini 10 or so percent slide on the markets, are we due for a lower high prior to heading down again?

  • Jay C.

    my 2c.

    Overall, things don't look too good for for the SPY.

    1)The 10 month SMA for the SPX based on Faber registered a sell.
    2)Weekly NYAD (Cumulative) is showing a double top
    3)Weekly MACD's for major indices show a crossover to the downside.
    4)Technical Damage done on the monthly charts for the major indices.

    Given that we have got our mini 10 or so percent slide on the markets, are we due for a lower high prior to heading down again?