The market volatility went crazy last week, starting with the steep drop after S&P downgraded the AAA rating on the US debt. Then up, then down and we end this week only down 1.5% on the Dow Jones. But is anyone comfortable that the worst is over? Not acccording to the Hollywood box office. Rise of the Planet of the Apes held strong for the second week, only dropping 50% in ticket sales. This story of greedy corporate ambition and the power of intelligence to raise the quality of life for the beasts we enslave (could these be the poor individual investors who have finally gotten smart about who and what is controlling these markets?) has resonated with audiences around the world.
MarketBOB has correctly called this a BEAR movie. We are now off over 11% and firmly through the support line from March of 2008. The market is correcting and if we fall 20% we’ll be officially in a bear market again. The box office doesn’t have any positive, uplifting movies in the pipeline anytime soon. There are no new ideas coming out next week, with two re-makes and one sequel: Conan the Barbarian along with a re-make of Same Time Next Year and the sequel is Spy Kids 4.
Here is the chart for the MarketBOB Long Wave, clearly showing the breakdown in our long rally off the reversal from Watchmen.