|The weight of the stone|
|Written by L.A. Little|
|Tuesday, 13 November 2012 05:19|
The market is hauling around a stone the size of Manhattan now with the aftermath of Sandy joining the fiscal cliff as major worries to go along with slowing corporate earnings and the fears of Europe. Is it enough to kill off the bull? So many times we have seen the continue intervention by the central bankers turn doubt and worry into glee. Is this time somehow different. Is there magic dust no longer magic? Has the extraordinary league of central bankers become ordinary?
I don't know that I would dismiss them just yet but as the age of the bull grows the probabilities of a reset increase. Last week turned the clock on the intermediate term trends. That has happened since summer a year ago when the last major crisis unfolded. Usually the turn of the trend coincides with some sort of bounce but the probabilities of range trades grows higher. In other words, to get a trend change on that time frame requires a good amount of damage technically which if repairable, take time.
That's where we are at. I'm sure the central bankers realize that. So what do you think they do this time around? Give up? I don't think so!