Tuesday, December 23, 2008

AAPL:WMT Ratio -- a reader reminds us

this morning a reader sends me this chart:



she also included this comment:

Good morning, Lucas; and season's greetings. I hope you have a restorative holiday period. A question, if you care to respond, as my ability to think and connect the dots is not as well developed as yours: a while ago, you wrote that we should watch this chart like a hawk...I'm still sitting high up on the barren branch and watching...this is a 'tell' about risk taking/retreat in the market. Be well. regards b


thanks a lot b! I've been really working hard trying to avoid an analysis of the Stock Markt. but I think you are on the right track here. the Apple / Wal*Mart ratio is a bad sign. I'm getting more and more uncertain about my outlook for a substantial dead cat bounce in equities. I'll give it a few more days I guess to show its mettle (why the hell not? it's not costing me any money) but it may be that my primary target of 666 for the Five & Dime arrives without the index bothering with a suckers' rally. I wish I had a better feel for the situation. hopefully the Markt doesn't crash this week before I make up my mind.