What Goes Around, Comes Around ~ The Risk Averse Alert

Friday, December 11, 2009

What Goes Around, Comes Around

Let's take a quick look at the inappropriately leading, mega-cap, Dow Jones Industrials Average. This group's leadership is, in fact, good indication the stock market at large is a barnyard of pigs waiting to be slaughtered.

Look, just ask yourself... How is globalization going to hold up as restricted finance alters the functioning of the physical landscape? Collapse already is occurring. Trade remains depressed. Sovereign nations threaten default unless somehow either bailed out or gutted. It — globalization — is all over but for the shouting (and there should be a bunch of that coming, too, no matter which way the sovereign debt problem is dealt with).

So, those leading corporate beneficiaries of globalization whose abusive perpetuation of an historic divide between haves and have nots, themselves, are likely to be abused in kind. Hey, what goes around, comes around. The faulty model under which top tier public companies operate, indeed, assures this.

And since thousands of other companies beyond core globalization junkies exist in a climate where all have become accustomed to chasing crumbs falling from a shrinking pie (that simply no longer is being subsidized with copious loads of cheap credit dished out as though it were ice cream), these too will suffer even more than has already been the case over the past ten years. NASDAQ's lag really is no mystery. Thus, going along to get along shall be further demonstrated a poor way to run a business, literally. Again, what goes around, will keep coming around until globalization as we know it is put to an end.


As noted previously, the Dow Industrials' advance following July's monster short squeeze is unfolding in a manner different from other major indexes. Is possibly an expanding triangle forming in the fourth wave position of five waves up from March bottom? If so, look for RSI and MACD readings to fall below respective early-July lows as the Industrials pull back and complete this prospective Elliott Wave corrective form.

This, of course, suggests more time passing essentially going nowhere, preparing pigs for slaughter. Oh boy...

Fast Money
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