Monday, September 22, 2008

"Canary in the coal mine" indicators

I wanted to bring to your notice these indicators I have had up for a while now (you would have noticed them on the right side of the blog). They were meant to warn us of an impending collapse in the markets, and from recent facts, they did!
  • Oil losing $100!
  • 10yr yield falling close to 3.5%
  • SnP falling below 1200
So I'm going to state that these are the same numbers I will be looking at to see if we are headed for another near term gut-wrenching collapse. On the flip side, here are the levels for these very same indicators which will tell me we are seeing a healthy recovery
  • Oil holding $100 but staying below $120
  • 10yr yield rising above to 4%
  • SnP rising above 1310
Let's see how true they are this time.

1 comment:

Anonymous said...

No comments on the bailout plan or its rejection by Congress?