Tuesday, July 13th, 2010

Stock Market Death Crosses And The Demise Of BP

Mediums:  The CR News Reports© is a copyright publication of Channeled Readings®.  The following predictions on the STOCK MARKET were channeled on July 12, 2010 directly from our “Higher Intelligence Source ” and not from what we, the Mediums may think, reason, guess, analyze or anticipate from probabilities or trends. These predictions are not based in conspiracy theories or come from a doomsayer’s slant. We provide Survival News Predictions to help you overcome any fear of the future you may have and empower you to prepare for what’s coming…  The Dow went up 511 points last week – the best gain in almost a year.  Combine this with the Lebron James media event, an upbeat retail sales report, and better-than-expected unemployment data (only 454,000 people filed for benefits), and you have the setting for uncontrolled media giddiness.  It seemed like a week for the record books if you listened to the mainstream media.  All the talking heads on TV were touting recovery and expecting more of the same with the coming earnings reports that start this week.  However, although some retailers reported better sales, the Consumer Confidence Index declined sharply to 52.9 from an expected 62 projected by the expert analysts.  Vacancies at malls and shopping centers in the U.S. continue to get worse.  Then there was the report on new home sales that stated that sales had dropped to the lowest level ever recorded; and existing home sales fell 30% in a month.  Small and medium banks are failing at an accelerating pace and the oil spill continues to drag on the economy.  Does this sound like the makings for a recovery in the markets?  Or, was this just a large rally that happened in a long-term bear market?  The markets are going up on low volume and falling on high volume.  The NYSE recorded the lowest volume of the year on Friday!  So, the markets didn’t go up on an abundance of good news and people flocking into the market.  In fact, funds are seeing a massive exodus of cash flowing out as people need the money to live on.  It has been over a year now, since April 2, 2009, that the government forced the Financial Accounting Standards Board (FASB) to drop Rule 157 that forced companies to value their toxic assets at market value known as; mark-to-market.  Instead, companies and banks can price the trash they are holding on their books at whatever they want…their original value or what they think they will be worth 20 years from now.  This shows false or mark-to-fantasy profits on the books that get reported as “real” profits, making business look good and driving up stock prices for the benefit of the shareholders.  This also gets the senior executives multi-million dollar bonuses at the end of the year.  Everybody is doing it, so don’t think business is “back to normal” or “we’ve seen the bottom” and it’s all going to get better from here on out.  Also, what seemed to be absent was the usual deluge of bad news from Europe.  That was until late in the week, when Greeks paralyzed the country for a day with more protests.  On the index front, the Dow performed a “death-cross” on July 6th, when the 50 DMA crossed-over the 200 DMA.  This is one of the most alarming chart patterns signaling bad times ahead.  The last time this happened was December 2007 and it remained under the 200 DMA for 18 months with stock prices sinking before it crossed back over the 200 DMA going up.  The Dow has been falling since early May, making lower lows and lower highs.  The S&P made the same “death cross” on July 2nd.  The last time it did this was December 2007 and, just like the Dow, it stayed under the 200 DMA for 18 months.  The S&P has been on a downward trajectory since April 19th 2010.  The NASDAQ has been falling since April and is preparing to form its own “death cross” any day now.  It also formed a “triple top” between June 3rd and June 17th, another sign that things are reversing.  What is really going on in the stock market and does the individual investor stand a chance?   …Go ahead with your predictions and commentary…

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