Wed August 24, 2011
I mentioned two posts back that the lower low on the NASD summation index with a higher high in the QQQ was a negative divergence, a sign of slipping support.
I went on to say this was just another clue that the double dip recession will be a reality.
Check out page C14 in the WSJ today. In Heard on the Street, China's manufacturing sector is still below 50, a sign of contraction. It is only a matter of time until the bell will toll on the vacant real estate in China and the over priced real estate in the 'General Stores' that surround China, like Malaysia and Australia. We will then see a US 2008 style melt down in prices as deflation really takes hold.
Did you notice on page B5, Kraft drops coffee prices 6%? Elsewhere Chicago re defines the lender as the owner in an attempt to get property taxes from vacant properties, yeah right guys. Until a real owner assumes the property this is just another business as usual Chicago version of re arranging the Titanic deck chairs.
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