When the music stops...

If you want to see the fall out of the real estate bust in the US, click here.
Edgar Martins, a Portuguese photographer, made this pictures for the NY Times. Be quick, before this paper also halts its activities.

An absolute fabulous novel is out: Hedge Fund Wives. You find the six first chapters here.

There was a time when the European Securitisation Forum was held in Barcelona. Brilliant time, that June 2007, when we drunk champagne and danced to a rock band called D’Leverage.
How different for the ex-colleagues who attended this year in Edgware Road, rather a cheapish venue in London, where coffee had replaced the bubbles.
The reason is obvious: the industry of repackaging mortgages, consumer credit or auto loans has ceased to exist

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I am a train...

Exploring the universe of point-and-figure charts linked to renko pictures, we halt today at Burlington Northern Santa Fe Corp (ticker: BNI), a railway stock acting as an icon for everything that is around moving in the American economy. After the rally from March, it looks as if clouds are packing together at the horizon.
The daily renko chart is still upbeat: the daily trend is positive though a little overextended as the CCI-indicator is showing us.

On a 60-minutes base, however, things are looking different. It seems a short term correction is under way.

This thought is confirmed by the P&F chart where a triple bottom seems to be taken out soon.

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Anglogold Ashanti

Yesterday this South-African goldminer lost more than 5%. Although we're up a little today, the trend as measured by our 60-minute renko charts, became negative. Is this the start of a decline or is gold and this group of stocks able to reverse course again?

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Is the rally fading?

Yesterday we stated that the rally on the exchanges is nearing a top. Here are some pictures to illustrate this thought.We have:

1. the number of shares above their 50-day average

2. the bullish percent index on the NYSE

3. De McClellan summation index

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A top in the making?

Is a top in the making?
The answer is ‘yes’. We observe that major indices are overbought. Take indicators as stocks above their 50 day moving average or bullish percent indices: they are all trading in overbought territory.
Now, a top doesn’t mean necessarily a correction. Another possibility to work off this overbought condition is through consolidation and some sideways trading.
Professionals will try to bring indices further up through sector rotation.
Don’t forget: short interest is not declining for the moment, so rotation combined with earning reports will suit the bears so they can prepare another assault later on this quarter.

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