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Bear's Lair

Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.

 

Yesterday, as the dollar fell to new record lows and oil and gold prices surged to new highs, Wall Street remained fixated on wholly meaningless government data that managed to report the lowest inflation in the last half century.

Executive summary

There is often a moment in a major market move where public perceptions of the item suddenly change and the feeling is something like: "Yup, this REALLY is a bull market!" or "Yup, this REALLY is a bear market!" This is sometime ca

Four leading members of the Bush administration's economic team, including Ed Lazear, Chairman of the Council of Economic Advisors, Commerce Secretary Carlos Gutierrez, Al Hubbard, director of the National Economic Council, and Jim

There has been a disconnect in logic which has been seriously bothering me in recent weeks.

In late summer, my perceived strong signal for the September rate cut proved accurate. It was the dire condition of the Wall Street broker dealer stock index, the XBD.

When the S&P500 index broke to new highs at the end of May and again in recent weeks there was a great media fanfare.

What is a Black Swan? Before the discovery of Australia, empirical evidence told us that all swans were white and that belief lasted for 100s of years until a Black Swan was spotted in the wilds of Australia.

Gold’s situation now bears a striking resemblance to the period from September through November 2005, which was followed by an almost uninterrupted advance that resulted in near 60% gains.

The sad truth is that despite the best efforts of monetary economists everywhere, fundamental misconceptions about inflation remain entrenched in government, business, and the media.

Interesting how difficult it is for some people to utter the words "I don't know" - as if it's somehow a slight on their abilities.

Surfers know they can catch many rides on the smaller waves that break along the shore.



The vast majority of economists are currently hailing the freefall of the dollar as a windfall for American business.

In this analyst's view, if the Gold Share Indices break up relative to Commodities Index on the following two charts - which have been "dumbed down" to 7.5% X 3 box reversal to cut out all trading noise - then that will be a leadin

Numerous favorable signals point to a resumption of the commodity bull. It had been stalled for almost a year.

We have been bullish on the broad stockmarket on the site, but short to medium-term bearish on gold and silver in the recent past and by extension gold and silver stocks, due principally to the distribution patterns that have forme

As a contrarian, it is my nature to worry when too many people start agreeing with me.

There is an anomaly in the equity markets which seems not to be drawing enough attention.



This anomaly can be seen by comparing the following two monthly charts (courtesy Decisionpoint.com).

Faith and confidence in the USDollar, in management of the US banking system, in the viability of the USEconomic structure, in the image of Wall Street honesty, and in the integrity of USGovt federal finances are all at historic lo

BARRICK EXECS CONTINUE TO EXERCISE OPTIONS AND SELL SHARES

This article was originally posted on Sunday September 30th for the benefit of subscribers.

Finally, the $100 Upward Catapult arrived.



TWO MONTH'S AGO:

We now have an extraordinarily bullish setup for the broad stock market, which as we will soon see is considerably amplified by the latest Commitment of Traders data, that is unprecedented in the writer's experience, and startling.

Currently, Wall Street is divided into two camps: those who feel the Fed should fight recession, and those who feel it should fight inflation.

On Thursday, September 20, 2007, the lease rate of silver suddenly dipped into negative territory. It fell to minus 0.1 percent per annum.

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