Correction seems to be over, "Green Shoots" coming in 2013

It appears that EEM and FXI have turned around with the big surge in Hong Kong stocks and the relative strength of European equities on Thursday and Friday.

[attachment=20663:eem0420.png]

[attachment=20662:fxi0420.png]

The market never seems to be able to stay down very long, because the slightest whiff of a stock market correction sends fleeing back into bonds, which means each successive equity market correction ends up leading to sustained sub 2% 10-yr. yields and lower and lower corporate and junk debt yields, resulting in a Doug Noland nightmarish surge in corporate debt issuance.

[attachment=20664:jnk0420.png]

On Tuesday, I'm expecting AAPL to announce a 4 to 1 stock split, and the world's largest corporate debt offering at 1.1% in order to pay out a "special dividend" to loyal holders of the stock who have held fast during the correction.

It appears that the Bernanke "Wash, Rinse, Repeat" cycle is intensifying.

That is because many commodity prices have completely imploded and consumers are now rejoicing at the inflationary surge in consumer wealth thanks to a booming house flipping market and rising stock prices, and at the same time food and energy costs are plunging.

Look no further than the eye-popping chart of Home Depot:

[attachment=20665:hd0420.png]

I think central bankers are getting more and more frustrated with slow economic growth, so they are going to be putting their foot on the gas in order to attempt to increase money velocity to spur bank lending and business investment.

That is why these stocks refuse to sell off because the smart institutional money keeps buying dips in stocks while the squeamish consumer keeps buying new iPads, Lululemon outfits, yet at the same time keeps piling his 401(k) contributions into bonds instead of stocks.

The second investors realize the correction may be over, they immediately start piling into the usual suspects: Consumer discretionary stocks, beer stocks, and shopping mall REITs, LOL....

[attachment=20666:dis0420.png]

[attachment=20668:tap0420.png]

[attachment=20667:spg0420.png]

As proven by this chart, the consumer has never wavered, in spite of:

- Flash crashes

- Fukishima disasters

- Bird Flu epidemics

- Eurozone meltdowns

- Election uncertainties

- Fiscal cliff worries

- Sequester anxiety

- Cyprus haircuts

[attachment=20669:rth0420.png]

Edited by PrintFaster, 20 April 2013 - 09:17 AM.

AAPL 4 to 1 stock split is your big hope ? they'd be better off announcing several new products. Stock split, I've seen this hilarious [bleeeep] in 2000. "OMG, the stock split, the stock must go up the next day" ... and then what ? AAPL is DONE. its the next MSFT, it will be kicking at some level for years and years. Up, Down, up, down... its dead money at best. Unless of course they lose more market share to Samsung, Nokia, Rimm, HTC, and a zillion chineese cell phone makers whos names we don't even know, and they keep eating away at AAPL every day.

Edited by ogm, 20 April 2013 - 12:41 PM.

Home Creepo just indicative of one more bubble waiting to implode. The people buying tools now, home "improvement" garbage, are extremely late to that "party." Its nothing more than a futile attempt by folks to assuage their worries from the present toxic environment, by borrowingly heavily from their future. Its the most ultimate expression of live for the present, as they've ultimately decided albeit subconsciously not only will there be a rather uncertain future, but there will likely be none in a rather short period of time. Instantaneous gratification rewarded in the form of materialistic pleasures. They'd selfishly rather spend heavily now on themselves than save for their offspring's futures. This is not consumption by a simple minded consumer. This is massive over-indulgence in a time where there is near zero sacrifice by any individual or our society colectively for the greater good of society now and in the future, inspired by a wholly and manifestly corrupt and immoral Federal Reserve, and equally corrupt financial sector, and hedonistic government minions who selfishly only exist to preserve themselves. In other words, public service to others is THE FURTHEST THING from a government employee's psyche. The chart speaks volumes, but its doubtful that anyone is interpreting it properly. The average folk looking at a chart like this would only wonder "wow, wtf is at Home Creepo, and maybe I need to get over there fast, before I miss the sale ?"

Yield starved desperado's are chasing anything that moves up. HD is a beneficiary of that self propelled phenomena. They might also be benefiting from another TV craze lately, the reality Home improvement shows! There must be at least a dozen now! The favorable seasonality will end soon. It will be interesting to see how the market withstands June through November unfavorable period.

It appears that EEM and FXI have turned around with the big surge in Hong Kong stocks and the relative strength of European equities on Thursday and Friday.

[attachment=20663:eem0420.png]

[attachment=20662:fxi0420.png]

The market never seems to be able to stay down very long, because the slightest whiff of a stock market correction sends fleeing back into bonds, which means each successive equity market correction ends up leading to sustained sub 2% 10-yr. yields and lower and lower corporate and junk debt yields, resulting in a Doug Noland nightmarish surge in corporate debt issuance.

[attachment=20664:jnk0420.png]

On Tuesday, I'm expecting AAPL to announce a 4 to 1 stock split, and the world's largest corporate debt offering at 1.1% in order to pay out a "special dividend" to loyal holders of the stock who have held fast during the correction.

It appears that the Bernanke "Wash, Rinse, Repeat" cycle is intensifying.

That is because many commodity prices have completely imploded and consumers are now rejoicing at the inflationary surge in consumer wealth thanks to a booming house flipping market and rising stock prices, and at the same time food and energy costs are plunging.

Look no further than the eye-popping chart of Home Depot:

[attachment=20665:hd0420.png]

I think central bankers are getting more and more frustrated with slow economic growth, so they are going to be putting their foot on the gas in order to attempt to increase money velocity to spur bank lending and business investment.

That is why these stocks refuse to sell off because the smart institutional money keeps buying dips in stocks while the squeamish consumer keeps buying new iPads, Lululemon outfits, yet at the same time keeps piling his 401(k) contributions into bonds instead of stocks.

The second investors realize the correction may be over, they immediately start piling into the usual suspects: Consumer discretionary stocks, beer stocks, and shopping mall REITs, LOL....

[attachment=20666:dis0420.png]

[attachment=20668:tap0420.png]

[attachment=20667:spg0420.png]

As proven by this chart, the consumer has never wavered, in spite of:

- Flash crashes

- Fukishima disasters

- Bird Flu epidemics

- Eurozone meltdowns

- Election uncertainties

- Fiscal cliff worries

- Sequester anxiety

- Cyprus haircuts

[attachment=20669:rth0420.png]

Hmmm, is that am exhaustion gap in XRT.?
http://stockcharts.c...allery.html?XRT S&P Retal Index? And two daily PPO (MACD) non confirmations of recent highs in price.? And a weekly PPO (MACD) negative crossover.?