Thursday, 2 July 2009

Down, down, down ....

Great graphic I got from Barry Ritholtz's The Big Picture blog. It is interesting to see what is really happening in this depression. The data tells the story. That's why I am such a believer in technical analysis over fundamental analysis. Charts can tell you what's happening today. The rate of decline in job losses may be weakening, but the trend is still down. It will stay in a downtrend until it isn't anymore. That's the nature of trend following. I will say the recovery is on its way when that REDLINE start to turn up. The stock market will probably turn well before jobs, but to say RECOVERY is on the way for the average American without that redline turning up is just disingenuous.

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