Here is a chart of the world’s largest economies industrial production. Industrial production can be used as a meter for global growth. The chart presented via the IMF DataMapper is worrisome. Major global economies are now sitting on a major resistance line at zero. The last time global economies were at this level and began to fall below zero on the chart the 2007-2008 financial collapse succeeded. Japan (red chart line) of course fell far below zero for a brief stint due to a catastrophic tsunami. If I begin to see several of these countries beginning to fall below zero I will become worried about the global financial markets as a whole. This indicator would deem beginning to look for possible short positions, raising cash, or cutting back on long term holdings.

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