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Signs of the Times~ Tracking Big Footprints in this Market
Microsoft shareholders appreciated their big dividend and Apple shareholders pray for similar, noting $40 B in cash.
Please note we are not recommending these stocks nor unrecommending them. Everyone’s situation is different and we put out the Big4 and TopTen lists for subscribers.
We note QCOM is well below last August peaks, targeting a low -60% below the high of 55.30.
http://stockcharts.com/charts/gallery.html?s=qcom
In addition to the financials and techs, we also had a lot of M&A Merger and Acquisition Activity announced around this Full Moon. That also may be an indicator closer to tops.
Along with market leaders that did not do as well as the rest of the market, we note the Baltic Dry Index rolled over for the fourth time in two years, as China credit, imports and stocks peaked in a frenzy.
The BDI Point and Figure Target is –29% lower:
http://stockcharts.com/charts/gallery.html?$BDI
Along with the China Frenzy is Copper, which Big4 are short.
Copper rallied above $3 after the Chilean earthquake, which had bullish effects on copper supply from a leading producer. These effects may not last long as Chile rebuilds and recovers.
More to the point, the man who called the Copper peak in 1996 with a rogue trader at Sumitomo hoarding it, now sees similar signs with 90% speculative inventories in China and elsewhere after Copper prices up 140% last year.
http://www.bloomberg.com/apps/news?pid=20670001&sid=aAid0.8z1qBs
Copper, along with Electricity Prices and Baltic Dry Freight Rates, is a pretty good leading proxy for economic activity.
Big4 is short peak electricity, so we have a trifecta hat trick for defensive moves in the market. Time tells.
