What’s the big picture in the overall global economic cycle? Well lets see what the market has to say. My analysis tells me its over! The top is in and world equity markets are now in a bear market. One never knows how extensive such bear will be, however we are allowed to guess. And my guess is…brutal
Let’s take a look at the world’s stock markets all in one size fits all chart. The Vanguard all world Ex-US index:
Here we have a short sellers dream chart. Near perfection actually for one who wants a hedge over the next few years during the worlds economic mayhem. I believe for those who just want safety without active management one could just take a short position and hold for a few years and not worry about it.
Note the weekly chart: we have a prime set-up of a double topping 30 W EMA. So the market has already done its work and beaten all momentum out of this stock. We have the 30 EMA trending down now and OBV has now given it up. Note how the OBV had a nice little back test to its own declining 30 EMA…very nice. Stochastics currently on a little mini uptick but that should resolve in short order.
Overall this is making a great big giant statement as to the state of the worlds stock markets.