Q1 GDP estimates were complete hocus, spurred by inappropriate inferences from seasonal adjustments and over-optimism that housing prices can ignite a positive feedback loop, at this point in time.
If it seems like there’s no way you could have known that…you’re wrong.
I told you explicitly that this would happen in January, while also reminding you to be stupid long in the teeth with equities. The entirety of this positioning was predicated on selling out into the spring strength and preparing for reality to set it during the summer; that same time reality always sets in.
How many of you listened?
I’m guessing not many, because in the spring, all of a sudden site traffic plummeted and I literally couldn’t give my posts away.
Incidentally, I also told you you’d be back.
We’re enjoying a relief rally at the moment from oversold conditions. Behind that, there’s at least one more leg lower waiting. We will retrace most of the last four months; first look comes at 1,540 SP for me.
At that point, I’ll make the judgement if we go lower still, or set up for a bottom.
In the meantime, please stop talking about the accelerating growth lines.If you enjoy the content at iBankCoin, please follow us on Twitter