Tom McClellan and his McClellan Oscillator have been around before all those financial talking-head shows on television today.
Now we don't know or have we ever met him but we are familiar with his work for longer than he most likely would like us to say since it tends to date him.
His most recent chart covers something our readers know we have been discussing for some time, all the hand-wringing about deflation. Put simply, it's about too many folks on one side of the boat.
In terms of MSM and the coverage--in our view--it's way overdone.
As Oscar Wilde once said: "I know that's a secret because I hear it whispered everywhere."
There is inflation in the use of "deflation."
Tom McClellan, editor of the McClellan Market Report, wrote in a post on Thursday that the number of reports about impending deflation have been surging, which could mean the opposite is coming to the market.
"I cannot believe the volume of the news stories I am seeing in the financial media, with people worrying about impending deflation," McClellan wrote. "And as any card-carrying contrarian knows, when a topic gets too popular, you are near a turning point."
Over the last several months, worries about deflation — or falling prices, which economists say indicates a contracting, not expanding, economy — particularly in the eurozone, has been the story in markets.
McClellan further continues: The basic point for beginning contrarians is to disbelieve most of whatever you are hearing repeated in the financial media. And the more it is being repeated, the more you should disbelieve it. Learn to trust your own analysis, rather than listening to the talking head du jour on TV, even if it is me."
The appearance of "deflation" in news stories is at its highest level since October 2010, and as McClellan sees it, this might put us closer to the opposite occurring in the economy.
http://www.businessinsider.com/markets-chart-of-the-day-october-24-2014-10
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