Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Tuesday, October 14, 2008

3 Charts for Tuesday

I didn't blog yesterday because I was busy putting the finishing touches on my new gold report, "Your Golden Parachute for 2009." It goes out today, kicking and screaming apparently, from all the trouble we've had trying to load it to the web site.

Red-Hot Canadian Small-Caps subscribers, Red-Hot Global Small-Caps subscribers and Red-Hot Commodity ETF subscribers all the get the report for free, my way of saying "thanks for sticking with me." Look in your email inbox.

Here are some charts you might find interesting ...

According to Chart of the Day, the first year of this current correction in the markets is the most severe of all major Dow corrections since 1900.

Next, let's look at a chart of the growth in Federal Reserve assets ...

The Federal Reserve is currently engaging in an unprecedented expansion of the money supply. Is that inflationary? We'll see.

Next, let's look at a monthly chart of the S&P 500 ... On this monthly chart of the SPDR Trust, which tracks the S&P 500, I’ve circled the “long-tail” bounces – where the leading stock index sold off hard, only to reverse and move higher. Two of the last three times this has happened, this signaled that the “tail” low wouldn’t be violated for a couple of months.

This doesn’t mean the bear market is over by any means. But we could have a playable bounce


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