TSG Letter November 9 – Beware of economists…

Dear Trader,

TSG Stock Market Letter – Beware of economists…

Week Ending November 16, 2007

Topics Discussed This Week:

* Markets get more interesting…
* Leaders still point down
* Fed pumps in more helium bucks…
* Earnings remain weak
* Pending home sales flat, Treasury flows negative…
* Charts – market deterioration continues
* … Dear Trader,

TSG Stock Market Letter – Beware of economists…

Week Ending November 16, 2007

Topics Discussed This Week:

* Markets get more interesting…
* Leaders still point down
* Fed pumps in more helium bucks…
* Earnings remain weak
* Pending home sales flat, Treasury flows negative…
* Charts – market deterioration continues
* The cruel truth about P/Es

Few thought it possible as markets again surprised but this time to the upside. But regarding the bigger picture, here is my favorite quote of the week.

“In 1929, days after the stock market crash, the Harvard Economic Society reassured its subscribers: “A severe depression is outside the range of probability” In a survey in March 2001, 95% of American economists said there would not be a recession, even though one had already started. Today, most economists do not forecast a recession in America, but the profession’s pitiful forecasting record offers little comfort.”

It is a sad reality of markets that at crucial times, the majority (including the professionals) is wrong. It is why bear markets and recessions are so devastating. In markets, especially at major turning points, the few hawks get fat feeding on the many lemmings.

Are we there yet?

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To read this week’s STOCK LETTER please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read our INTERMARKET REPORT tomorrow go to
http://tradesystemguru.com/content/blogcategory/35/69/
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