ajtj99's Market Pulse

[challo]

aj,

I don't know if you have heard of TA expert Louise Yamada but I've watched her many times.

She was on cnbc Wednesday. She had a nice spx chart.

See chart video here

http://www.cnbc.com/id/23031631

these were her comments

Chart: S&P 500, 1993-2008, with 20-month moving average.

It looks as if we're in the midst of a structural sell-off, Yamada says the likes of which we haven't seen since 2000. We could be in for an extended bear market period – and it could be global. Sell any rally, she counsels.

Chart: Monthly Relative Performance of S&P Consumer Staples, 1998-2008

If you must be in the market, consumer staples appear to be holding up, Yamada says, and should continue to do so. However this doesn’t mean the prices can’t come down – it just suggests the prices should come down, less.

Chart: Monthly Relative Performance of S&P Financials, 1996-2008

This chart suggests that financials are falling apart, observes Yamada, and that they could continue to deteriorate. Sell the strength.

Conclusion: Better to be out of the market right now wishing you were in.. than in the market wishing you were out.