Saturday, January 15, 2011

6 Month Euro/Walmart Lead Indicators Are Extremely Bearish


6 Month Euro (ETF FXE)/Walmart (WMT) Lead Indicators (versus S & P 500/SPX) Are Extremely Bearish, see http://finance.yahoo.com/q/ta?s=^GSPC&t=6m&l=off&z=l&q=c&p=v&a=ss&c=fxe,wmt.

One can see in the 6 Month Euro (ETF FXE)/Walmart (WMT) Lead Indicator chart at the link above that they've worked well (WMT used to be my primary lead indicator, now, I'm bringing it back to use in concert with Euro ETF FXE), and, the lag time recently, between the extremely bearish indication and weakness (seems like indicators aren't working), points to an important cycle high occurring (the longer/more important the cycle the longer the indicator lag time), possibly the final Major Cycle High for the SPX (S & P 500, http://bit.ly/i0nsT) Major Upcycle since the 3-6-09 666.79 Major Cycle Low, and, Quantitative Easing began again recently (massive Fed Credit pumped into the financial system and T Bond buying to artificially lower interest rates).

So, it's likely that SPX (S & P 500, http://bit.ly/i0nsT) is approaching an important cycle high, and, that a vicious decline is likely to occur shortly after an important SPX cycle high occurs. The 6 month Euro (ETF FXE)/Walmart (WMT) Lead Indicators are extremely bearish, see http://finance.yahoo.com/q/ta?s=^GSPC&t=6m&l=off&z=l&q=c&p=v&a=ss&c=fxe,wmt, and, they are probably correctly pointing to a substantial and possibly extremely large decline in the not too distant future, especially after Quantitative Easing ends.

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