Some things that I cant seem to forget when analysing this downward trend:

1. Some bulls claim this rally since March is based on US corporations being global. If that’s the case then Europe is looking really bad right now with Spain, Greece and Portugal not looking good at all.

2. China is also another one of the bulls favorite green shoots, there are more and more indications of a bubble about ready to pop in china.

3. China and the US are trading threats. Not good for our unlimited credit supply.

4. Housing is still taking a beating.

5. States are on the verge of bankruptcy and their tax base is still falling.

6. More indications that the banks are going to be asking the feds for another hand out.
7. Unemployment is still rising.

8. QE is headed for the direction of “winding down”, or at least that is what is being claimed.

9. Some of the companies posting positive earnings are doing so because of cost cutting.

This down ward force might be temporary or it could very well be the new normal. Either way it’s not unjustified in my view.

- schrock

Related Posts:

• Why people are buying?
• Ok, let’s talk full continuing unemployment:
• There is one scenario where interest rates will not rise significantly.
• There are plenty more Dubais on the horizon.
• The USA trade and budget deficits since the signing of NAFTA:

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