http://www.zerohedge.com/news/ultimate-indicator-easy-money-access-rolling-over-and-absent-more-qe-it-market
Two weeks ago courtesy of Sean Corrigan, we presented what many consider the "ultimate shorthand indicator of easy money and speculative access" - the stock price of auction house Sotheby's. Well, the easy money may be about to end, and with it the latest bout of irrational market exuberance. As the chart shows, Sotheby's has timed the three previous armageddon with uncanny precision, with the red vertical lines marking the market tops almost perfectly. These occur when the i) RSI hits overbought, a condition that has been realized now; ii) when the stock price has a monthly closing below its 12 month Moving Average, also realized and iii) when the MACD crosses below its Signal line - this is about to occur any minute. We expect the 4th red vertical line to mark the end of this particular period of uber easy money any minute, and absent another monetary stimulus, to begin the at first slow, then very fast collapse to another market secular low.
Two weeks ago courtesy of Sean Corrigan, we presented what many consider the "ultimate shorthand indicator of easy money and speculative access" - the stock price of auction house Sotheby's. Well, the easy money may be about to end, and with it the latest bout of irrational market exuberance. As the chart shows, Sotheby's has timed the three previous armageddon with uncanny precision, with the red vertical lines marking the market tops almost perfectly. These occur when the i) RSI hits overbought, a condition that has been realized now; ii) when the stock price has a monthly closing below its 12 month Moving Average, also realized and iii) when the MACD crosses below its Signal line - this is about to occur any minute. We expect the 4th red vertical line to mark the end of this particular period of uber easy money any minute, and absent another monetary stimulus, to begin the at first slow, then very fast collapse to another market secular low.
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