Stock market ready crash downwards 1987 style – a catastrophe in hedge funds and private equity in the happening
Peter Oberois
May 17, 2007

The divergence is in place. The advanced decline lines are indicating trouble. The volume-based distribution is at its highest. The sentiment indicators show the market is more vulnerable than 1987 top.

The crash will be spectacular. Of the 99% hedge funds, more than 80% are invested on average. The private equity funds have gone wild to buy anything that they possibly can. The Treasuries are ready to vault upwards.

It was a fantastic stampede of hedge funds and private equity funds rushing to get into the stock market – and they did. They are trapped now, badly. They will get all at once – believe it or now. The MACD analytics point to a 25% collapse fast. The momentum analytics point to the fact the downward trend has already started.

Smart investors in 1987 bought way off the money puts for no little price before the crash. The same time may have come again.

Stock market ready crash downwards 1987 style – a catastrophe in hedge funds and private equity in the happening
Peter Oberois
Smart investors in 1987 bought way off the money puts for no little price before the crash. The same time may have come again.
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Consumer driven deflation and Hunt Brother syndrome – the stock market bubble is worse than that of the real estate
Rob Molta
The stock market bubble is far worse than the real estate bubble. The Fed called the real estate bubble as regional froths. Perhaps they will the stock market bubble as localized anomalies! The stock market bubble is worse than that of the real estate.
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Why stock market showing greatest ever divergences between indices?
Samuel Johnson
It may take some time before these few so called newly recognized rich are fully invested. But when they do, the bear market will be spectacular – ten times more severe than 1929-33 debacle.
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Start pf global interest rate reversals – Aussies take the lead with wages growth unexpectedly slowing
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Australian wages growth unexpectedly slowed in the first quarter. Australian rates will be lowered in the second half of the year. In spite of heavy rate increase by the Federal Reserve, the dollar is sensing lower rates in the future.
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Deflation now ready to expose itself through lower residential rentals
Tania Sonders
In spite of dollar at its lowest, the gold market is struggling. The reason is the same – the deflation in the economy is ready to become overt. The Consumer Price Index and Producer Price Index will both start contracting later part of the year.
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More realtors and quick money ‘flipping’ investors than real qualified buyers are the nightmare of housing market
Sam Adelton
Interestingly, there are more realtors than buyers now. The inventory of old homes keeps swelling at an unprecedented level. The prices in some regions are collapsing half a percent per month.
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Copper market’s topping action confirms recession – stocks can drop abruptly
Peter Oberois
The copper and other industrial metals are falling. The typical topping action is precursor to major economic slowdowns. Normally copper market tops or bottoms twelve to eighteen months before a major recession.
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