Wall Street Journal: “Scary 1929 market chart gains traction. If market follows the same script, trouble lies directly ahead.”

stockmarket-chart(Washington, D.C.) — I hope there is nothing to this. But I thought I ought to share it with you anyway.

“There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash,” says a columnist writing for the Wall Street Journal’s Market Watch. “That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929. The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart.”

“I should know, because I quoted a number of this chart’s skeptics in a column I wrote in early December,” notes Wall Street analyst Mark Hulburt. “Yet the market over the last two months has continued to more or less closely follow the 1928-29 pattern outlined in that two-months-ago chart. If this correlation continues, the market faces a particularly rough period later this month and in early March. (See chart, courtesy of Tom McClellan of the McClellan Market Report; he in turn gives credit to Tom DeMark, a noted technical analyst who is the founder and CEO of DeMark Analytics.)”

“One of the biggest objections I heard two months ago was that the chart is a shameless exercise  in after-the-fact retrofitting of the recent data to some past price pattern,” Hulburt notes. “But that objection has lost much of its force. The chart was first publicized in late November of last year, and the correlation since then certainly appears to be just as close as it was before. To be sure, as McClellan acknowledged: ‘Every pattern analog I have ever studied breaks correlation eventually, and often at the point when I am most counting on it to continue working. So there is no guarantee that the market has to continue following through with every step of the 1929 pattern. But between now and May 2014, there is plenty of reason for caution.’ Tom Demark added in interview that he first drew parallels with the 1928-1929 period well before last November. ‘Originally, I drew it for entertainment purposes only,’ he said—but no longer: ‘Now it’s evolved into something more serious.’”….

To read the rest of the column, please click here.

>> Please click here to read Implosion: Can American Recover From Its Economic & Spiritual Challenges In Time?

 


Joel C. Rosenberg’s Blog

Larwyn’s Linx: New website, same lousy ObamaCare

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Nation

New website, same lousy ObamaCare: Silvio Canto, Jr.
Old, liberal Democrat: Vote Republican — Save the Country: Arnold Trebach
The War on Women Drags On: Jazz Shaw

GOP doctors go for Congress amid ObamaCare fiasco: Alexandra Jaffe, Hill
Punch Me: Democrats preparing for more bad news: John Dickerson, Slate
Democrats worry leaders in denial on Obamacare: Alex Isenstadt, Politico

NYT Wants Military Pay on the Chopping Block: William Teach
The 2016 Presidential Candidate That No One is Talking About: Dean Garrison
Man Builds Gun With Materials Bought AFTER Airport Security: VictoryGirls

Economy

Crime rate plunges after city dumps unionized police: Thomas Lifson
There’s Time to Stop the Next Big Boondoggle: Debra Saunders
What If Buying Coffee Was Like Buying ObamaCare?: Tammy Bruce

Scandal Central

FBI purged jihadi Qur’an verses from training materials: Robert Spencer
Obamas visit illegal immigrant protesters: ‘We’re very proud of you’: RWN
Obama: We’re Investigating My Own Obliviousness On Obamacare Site: WZ

Climate & Energy

U.N. Repudiates Global Warming: Douglas Herz

Media

FLOTUS at the Barbara Walters Improv: Barack ‘keeps his promises’: Michelle Malkin
Everything Seemingly is Spinning Out of Control: Ed Driscoll
Tomorrow Will Be “Dancing With The Obamacare Stars”: Prepare For Lots Of Spinning!: Mark Horne

Reporter tells MSNBC Obama administration ‘most hostile to the media . . . in US history’: BPR
Kanye West Hates Jewish People: Ed Driscoll
Barbara Walters silent as first lady says Obama ‘keeps his promises’: BPR

Manufacturing Intolerance: Daniel Greenfield
Obama’s Lips Are Moving, He’s Lying: Sara Noble
Jezebel Writer Wishes Gov Walker Died In Car Wreck, Apologizes: WZ

World

What part of “Death to America” do they not understand?: Diogenes
Missile Warheads in Jamaica: Terresa Monroe-Hamilton
‘Secret talks with Iran led Obama to shelve strike on Syria’: Times of Israel

Iran Demands US Apologize and Give Them More Money as They Enrich: Sara Noble
Temple Mount closed after Jews and Muslims clash: Lazar Berman
Now I love these guys for two reasons: Sondrak

Sci-Tech (courtesy BadBlue Tech News)

Google’s 200 ranking factors: The complete list [infographic]: Alltop
The Dismantling of POTS: bold move or grave error?: Slashdot
Inhaled Stem Cells Might Replace Lost Neurons: Caitlin Shure

Cornucopia

The Ballad of Kiwi Gardner: Sam Laird, Mashable
Hanging With the Mall Rats; Waiting for the Doors to Open: MOTUS
Paul Walker: His life of ‘Fast and Furious’ cars: Chris Woodyard, USA Today

Image: Wired Space Photo of the Day
Today’s Larwyn’s Linx sponsored by: Support Matt Bevin for Senator in Kentucky

QOTD: “The Senate is where the most dramatic changes could occur if a GOP wave develops next year.

In 2010, Republicans gained six Senate seats including two states that Sen. John McCain carried in 2008 (Arkansas and North Dakota) and four states that then-Sen. Obama won (Illinois, Indiana, Pennsylvania and Wisconsin). The only Democrat to win a Senate race in a McCain state in 2010 was Joe Manchin III in West Virginia. A six-seat takeover wasn’t enough for a majority in 2010 but would be enough next year.

Democrats have demonstrated their ability to win close Senate races in the past. But it’s worth noting that the party won six races last cycle with 51 percent of the vote or less in what was likely a more favorable environment than 2014. Incumbent Sen. Jon Tester was re-elected with 48.6 percent in Montana and Ohio Sen. Sherrod Brown won with 51 percent. Open seat Democratic candidates such as New Mexico’s Martin Heinrich and Wisconsin’s Tammy Baldwin won with 51 percent, and Indiana’s Joe Donnelly and North Dakota’s Heidi Heitkamp just cracked 50 percent.

Readers beware, this is not a projection. It’s too early for that. But Democrats ought not simply dismiss out of hand that 2014 could be another bad year — even a very bad year — for their party.” –Nathan L. Gonzales, “Open Your Mind to the Possibility of Another Midterm Mess for Democrats”

Doug Ross @ Journal