Tuesday, May 4, 2010

More Bearish Breakdowns in General Stocks

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In no particular order, some important break downs adding to the data indicating an important stock market top is approaching for the U.S. and other global markets that haven't already broken down. First up, Exxon Mobil (ticker: XOM) using a 2 year daily candlestick chart:

Chuck Cohen's latest piece on gold-eagle.com alerted me to Google's (ticker: GOOG) chart and it had a confirmed break down today - here's a one year daily chart of the action:

Here's a one year daily chart of very-bearish looking Alcoa (ticker: AA):

As previously anticipated, some confirmed break downs today in Euro land. Here's Italy ($INE) on a one year daily chart:

And here's Spain's ($SMSI) confirmed break down on a one year daily chart:

I'll leave you with some chart porn on the NYSE composite index. Here's the current 18 month weekly candlestick chart thru today's close:

And here's a potential smaller fractal rhyme on a daily chart from the 2001-2002 time frame:

Not identical by any means and on different time scales, but similar shape and "feel" to these rallies, no? What came next back then? Hmmm, let's see:

Naturally, you can assume that Gold stocks went lower with the general markets as everyone seems to tell me they ALWAYS do (just like today and just like in the fall of 2008). In fact, let's look at Gold stocks from the precise time frame of the stock market peak in March of 2002 thru the exact day of the panicky bottom in general stocks in July of 2002, using the $HUI Gold Bugs' Mining Index:

I am not going to tell you that I have been impressed with Gold stocks lately. They have not performed well relative to the level of risk they entail. But I remain bullish on both Gold and Gold stocks here. I am biased as I am now back to fully long in the precious metals sector and I am now also short commercial real estate. I don't trade physical Gold other than to buy more on major corrections.

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