Monster Up Day

Monster Worldwide had a huge 25% pop on Friday after posting better than expected earnings and revenue. However, the big picture is a little scarier. There is only the slightest chance that MWW is in a 3rd of a 3rd wave move as the August 2010 low did not go below the July 09 low, but the more likely scenario is a large double zigzag upward correction that may be approaching its final stages. The pattern could extend with a triangle, but even so, it points to the looming return of economic contraction that should be upon us by mid to late 2012 if not sooner. MWW peaked in May 2006 well ahead of the rest of the market. We should be watching to see when it tops in this cycle as a good leading indicator that a broader market top lies ahead.