The wick is lit and time is ticking away. Mr. Jim Chanos, a noted short-seller who blew the whistle on Enron, Tyco and other companies ready to implode, says the UK housing market is where the U.S. was 18 months ago. He may be too optimistic.
The Wednesday, November 28th, Daily Mail says that 10 million Britons are falling into a black hole of debt. Debt-laden Brits owe some 1.3 billion pounds to banks and finance companies and 53% spend more than half of their take home pay in debt payments. 5.4 million Brits, 12%, have missed payments on debts and bills in the last 12 months. Three percent fear they are about to lose their homes. Five interest rate hikes since August 2006 have added more than 100 million pounds per month to repayments on the majority of mortgages.
In terms of population, the housing bubble in the U.S. is small at one fifth of the size of The Housing Bubble: British Style.
THE ENHANCED PROTRADER MARKET TIMING SETUP.
In last week's essay, I used the Standard Market Timing Graph to illustrate how it could be used to call a market bottom. That was a great call, but it wasn't the only way to skin a bear. That's why I also use an enhanced version of the ProTrader Market Timing Graph.
The ProTrader Market Timing Graph allows one to study market timing from another perspective, and many of our subscribers say it is better than the Standard Market Timing Graph. I'm not sure I agree with that, but I know that I have made it better than the one described in my essay of August 20, 2004. I simply added the 9, 12, 26 MACD to the default ProTrader Market Timing Graph.
This indicator allows me to get a better feel for market momentum. It's like watching the BSR with the Standard Graph. For example, MACD crossovers on a 6-month, daily ProTrader graph clearly showed a momentum swing from Up to Dn on July 23rd, the first trading day after I wrote the snippet, "Beware the July High." You will also see other critical crossovers on August 21st from Dn to Up, October 16th from Up to Dn and now, November 29th from Dn to Up.
To see the ProTrader Market Timing Graph, simply access the Standard Market Timing Graph; then click on ProTrader Graph. If you do not have ProTrader on your computer, you may visit
our website to sign up for a Free 2-week Trial. While it's not absolutely necessary to have ProTrader, I love The Enhanced ProTrader Market Timing Setup.