Friday, September 25, 2009

Of square roots and economic indicators

From FT Alphaville:

Remember when George Soros warned of an inverted square-root recovery?

Something that might look a little bit like this in fact:

square root

Well, we couldn’t help noticing Danske Bank’s chart showing off the Baltic Dry Index as a potential leading indicator on Friday:

Could freight rates be leading commodities at the moment? - Danske Bank

Because a Danske-Soros combination might suggest this...MORE
One must always be aware of the possibility that what we think is pattern recognition is actually just a Rorschach of our own psyches:

Technical Analysis: S&P Black Swan Formation

Lifted from BloggingStocks:

A message board poster has put this hilarious chart showing that S&P 500 could be in for a rough ride. He writes that "The very rare black swan formation - note both feet and neck are complete and the rare vampire tooth variation is in place. This is very bad. Very very bad."...