Death Crosses Spread Like Virus

[Nemo]

So what do we see of all this?  Other than RUN!! ZOMBIES!!!

Nemo

http://www.marketwatch.com/story/death-cross-patterns-spread-like-a-bearish-virus-2015-08-28

‘Death cross’ patterns spread to all corners of the stock market
By Tomi Kilgore, Published: Sept 1, 2015 1:37 p.m. ET

“Death cross” patterns continue to spread through the stock market like an epidemic, even infecting market segments believed to be more insulated from overseas turmoil.

The Russell 2000 index RUT, -2.71%  of small-capitalization stocks became the latest victim among the major market indexes. The index’s 50-day moving average fell to 1,222.95 in midday trade Tuesday, crossing below the 200-day moving average (MA), which slipped to 1,224.11, according to FactSet.
Small-cap stocks can’t hide from the ‘death cross’ virus

Many chart watchers believe a death cross, when the 50-day MA crosses below the 200-day MA, indicates that a shorter-term decline has developed into a longer-term downtrend.

The Russell 2000’s last death cross appeared on Sept. 22, 2014. The index fell another 7.1% in the three weeks after that before bottoming at a one-year low.

That follows the death cross that appeared in the S&P MidCap 400 Index MID, -2.83%  on Monday.
Midcap stocks tracker infected with death cross on Monday

Smaller-cap companies tend to have less exposure to international markets than larger-cap companies, so are believed to be more insulated from weakness in overseas markets. For example, the Russell 2000 component with the largest market cap, Anacor Pharmaceuticals ANAC, -1.08% gets 100% of its revenue from the U.S., according to FactSet, while the S&P 500’s largest company, Apple Inc. AAPL, -4.47% gets about 62% of its revenue from overseas.

Since the meltdown in China’s economy and stock market helped spark the volatility in U.S. markets in the last few weeks, the Russell 2000 has outperformed the broader market.

Among the large-cap trackers, the S&P 500 index SPX, -2.96%  produced a death cross last Friday, while one appeared in the Dow Jones Industrial Average’s DJIA, -2.84%  chart back on Aug. 11.
S&P 500 produces first death cross in 4 years

Apple Inc.’s chart AAPL, -4.47% produced a death cross on Aug. 26.

Many have questioned whether a well-telegraphed moving average crossover is really a bearish signal or not. But at the end of 2008, three months before the market bottomed, all 30 Dow stocks had produced death crosses.

Among other notable indexes in which the bearish pattern has appeared, the Dow Jones Total Stock Market Index DWCF, -2.90%  also produced a death cross on Tuesday, the Dow Jones Transportation Average DJT, -2.14%  produced one on May 26 and the Dow Jones Utility Average DJU, -2.68%  produced one on May 7.
Nasdaq Composite still safe, for 2-3 weeks

Meanwhile, the Nasdaq Composite COMP, -2.94%  is two-to-three weeks away from producing a death cross. It could happen a lot sooner, if the market’s selloff gets any worse.

[JohnyMac]

Paraphrasing Reaver here: "I am tired of waiting...Bring it on!"

[Reaver]

Paraphrasing Reaver here: "I am tired of waiting...Bring it on!"

Couldnt have said it better myself.



You know it's getting worse and worse when I'm hoping for one of these hurricanes to fuck my state up just so I can get a taste.

Tell you what if WROL/SHTF was a waiter/tress I'd be leaving three pennies as a tip. Cause this is bullshit

[JohnyMac]

The NYS averaged +15 points the three days leading up to Labor Day weekend. Yesterday it was up ~400 and futures look good for today too.

With the U-3 unemployment for August coming in at 5.1% and U-6 was 10.3% I suspect we will see some more positive days in the market then it will start to slip again as we progress into September.

I have a question to the members of the forum...With 94million folks not participating (66% of the work age population) in the work force, how can the U-3 and U-6 be so low?     

[Nemo]

I have a question to the members of the forum...With 94million folks not participating (66% of the work age population) in the work force, how can the U-3 and U-6 be so low?     

I think that is only 66% are in and 34% are not considered in the work force.  And once you are out of work for a year, and off unemployment compensation you are no longer "unemployed" for purposes of calculating the unemployment rate.

And as far as U-3 and U-6 being low, thats: Finageling.  Cooking the books.  Hype.  Screening the numbers.  Adjusting the calculations.  Thats how its done.

Basically govt lying to the world so it looks good.

Nemo

[JohnyMac]

Just because...

To read the whole article go here.

The employment numbers released a few days ago left much to be desired right before entering into the nationally celebrated Labor Day holiday.  Not many people can enjoy the “labor” part of the holiday since those not in the labor force has hit another stunning record.  The latest gloomy figures show that 94 million Americans are not in the labor force.  This category added a stunning 261,000 people while overall jobs added came in at a lackluster 173k.  When we dig into the employment figures we find that many of the jobs being added are also coming in the form of low wage jobs.  The market is coming to the grim realization that something is fishy with how the employment figures are reported.  We supposedly have the lowest unemployment rate in seven years yet somehow we now have 94 million Americans not in the labor force with hundreds of thousands of people dropping out each month.  Those finding work are largely in McJobs with low pay, no benefits, and job security that resembles the lifespan of a fly.  The army of non-working Americans continues to grow...

By the way...Futures are down this AM.