Friday, August 7, 2015

The Epic Divergence Between Stocks And Commodities.......ANOTHER PESKY FACT!

The Epic Divergence Between Stocks And Commodities

Something Has To Give!


Be careful here – deteriorating internals matter. The condition of market internals is precisely the same hinge that – in market cycles across history – has separated overvalued markets that continued to advance from overvalued markets that collapsed through a trap door.

Put simply, the recent market peak represents the second most overvalued point in history for the capitalization-weighted stock market, and the single most overvalued point in history for the broad market.

When weak participation has been accompanied by rich valuations, scarce bearish sentiment, and recent market highs, the number of instances narrow to some of the worst points in history to invest.

Understand that the present deterioration of market internals is broad-based, unusual, and historically dangerous.

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