STOCK MARKET WATCH -- Monday, 12 November 2012 (Holiday -- US markets closed)

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30. HUSSMAN: After The Recent Market Dive, The Market Is Set Up To Tank Some More

http://www.businessinsider.com/hussman-lopsided-risks-2012-11

n his latest note, fund manager John Hussman says that even after the market decline the market is primed to fall some more.
In mid-September, our estimates of prospective market return/risk dropped to the lowest figure we’ve observed in a century of market history (see Low Water Mark). That week turned out to be the high of the recent bull market, though it’s certainly too early to establish whether that was the ultimate peak. During the recent correction, I’ve noted a modest improvement in our return/risk estimates – which focus on a blended horizon looking out from 2-weeks to about 18-months. However, last week, the stock market experienced some significant damage to internals (breadth, leadership, price/volume measures, etc). As a result, our estimates of prospective return/risk have plunged lower again, to what is now the second most negative figure we’ve observed in a century of data – the September 14, 2012 weekly close of 1465.77 continues to mark the most negative estimate.


Read more: http://www.businessinsider.com/hussman-lopsided-risks-2012-11#ixzz2C12RAe00