Mind Warp : S&P 500 Hindenburg Again
We get these headlines.
*DEERE SAYS CONSTRUCTION MARKET IS SOFTER THAN EXPECTED.
Then we have this.
AMM [Reg]: Deere posts record earnings on strong equipment sales
MACY’S INC <M.N> CFO SAYS THAT MUCH OF OUR WEAKNESS IS DUE TO THE HEALTH OF THE CONSUMER.
CNA : Information technology giant Cisco announced on Wednesday that it will cut 4,000 jobs, equal to five percent of its workforce.
But economic numbers could not be even better ! And it should be time to buy Cisco because their profits will improve once they cull the headcount ?
I do not even bother to try to understand because I know if I read any of the CIO reports out there, I will be doing myself a disfavour.
And Hindenburg ? It has gone mad ! 6 Omens in 8 days ! (That is according to Zerohedge).
** 1 red dot = 2 omens !
“Correlations within the stock market have plunged in recent weeks, meaning individual stocks and sectors are no longer moving up and down in sync with each other like they have for years.” Source : Business Insider
http://www.businessinsider.com/cross-asset-correlations-have-collapsed-2013-8
All correlations within the stock market and correlations amongst the various asset classes have broken down since July.
This means one thing. There are people hurting out there.
And maybe it would be wise to heed the omen this time.