On The Verge Of The “Ultimate Death Cross”
by Tyler Durden
ZeroHedge.com
07/16/2012
In short: the recession is now here, just as it was in the fall of 2011 until global coordinated easing injected trillions and masked its impact, and will manifest itself unless the global central banks step up far more aggressively and tune out reality once again (this time with a half life that will be, well, half of the prior intervention).
And now, for the main event:
Finally I want to share with you news that the S&P is on the verge of an “ultimate” death cross (see chart below). This is where a 50-month moving average (currently at 1152) falls below the 200-month average (currently 1145). The Trend blogspot (link) tries to make some sense of this very rare event. They note that the averages came close to crossing in 1978 towards the end of the 1965-82 secular bear market, but just held. By contrast Japan suffered a monthly death cross in 1998 and 14 years later we are still in the firm embrace of the bear. Watch this space.
Full Piece…HERE
Dr. Schillings entire professional career is based on the ultimate death cross in his the age of deleveraging which factors in stock market collapse . However economist view the stock market as a zero sum game which does not have anything to do with GDP. Consequently the depressionary deflation is a decade reality which makes shorting the markets a way to make a quick hundred million. Will burned consumers come back to the market but punish the market by boycotting it for a decade. This is it. Do you really think that the shadow banking system protected the stock market or consumers. The warning bell has rang and the signs are negative. How in the world can you believe that in adeleveraged economy will produce a bull market Wake. Up and short the market.