Monday, January 18, 2016

The Hardest Landing

Stocks have peaked before profits (Y2K). Stocks have peaked concurrent with profits (2007). But stocks have never peaked AFTER profits. Until now. Central Bank dopium kept gamblers in the casino too long...

GAAP Profits with S&P

Institutions started selling when profits peaked
Up volume / total volume

The trend is down, because the cycle is over...
Corporate profits (quarterly) year over year change

The Dow's Q3 (Ending Sept. 30th) revenue declines (20/30 stocks):