The Cover Indicator
Well, it’s not quite the cover of the Rolling Stone. It’s this week’s cover of The Economist.
The vaunted editorial staff of The Economist (pictured) have decided on the cover photo for the latest edition. As you may or may not know, the “newspaper” is written anonymously, supposedly because anonymity “gives to the paper an astonishing momentum of thought and principle.”
I think it’s done that way so not everybody will know exactly how f*cking stupid their editors are.
More than three months past the all-time high for the markets, after a 20% drawdown from peak to trough, and after a huge capitulation and reversal day, these esteemed editors come up with this as their cover.
Good job, boys. Good job.
Might just be time for a multi-month rally.
For more on “The Economist Cover Indicator,” see this excellent post by StockBee.
I’d subscribe to The Economist, but frankly, Charmin is cheaper, and doesn’t chafe as much.


January 29th, 2008 at 6:34 pm
Bill, check out this collection of gloom.
carlfutia.blogspot.com/2008/01/gushing-gloom.html
Like I said last night, I’ve never felt more comfortable holding long positions than I do right now. Of course that may change depending on this last gauntlet of econ data the rest of this week, but as for sentiment I love the bad mood out there right now.
Sold to me I suppose. We’ll see.
January 29th, 2008 at 6:41 pm
Thnx.
Check this out.
TickerSense Bloggers Turn Bearish.
Here’s the chart. See how the green “bullish” line capitulated with the market? Too funny.
January 30th, 2008 at 8:06 am
Am I seeing that right? - spikes down on that green line March 10, 007, mid-July 2007, and now? Damn, that looks like a fine bottom indicator.