The Canary In The Coalmine...

...has choked and died.

This is a daily chart of the Australian stock market index. The picture does not look good. While this (and other) market might put up a bit (about 24-48 hours) of a fight, the game is most likely over.

The Time Is Now II

Risk and related assets are continuously bid, however this is likely to end soon.

Below is a daily chart of the Australian SPI 200 index future. The move from July lows is a clear corrective zig-zag into the current highs. Technically, this is one of the cleanest set-ups, and with Australia generally being one of the highest leverage plays on the global growth cycle (which is likely to disappoint soon), this is my biggest short.

I anticipate a move lower of about 20% in the next six weeks.

The Time Is Now

The anticipated rally to challenge August 2010 rally highs has materialised. It is now my belief that broader indices across the world are within 1.5% of what will turn out to be medium-term tops, with said indices falling below their July 2010 levels.

This is a daily chart of US Mid-Caps. I believe the September rally is a final part to the correction that began in early July. This final part is now nearly complete. Shorting everything and anything is advised on any "pops" higher.

Risk Likely Bottomed.

Equities have likely bottomed for some time.