Thursday, December 9, 2010

Read The Message of The Markets - Not Headlines

Investors are getting nervous? Investors are always nervous. When they’re not, particularly retail investors, it’s time to run for the exits. Trend energy (REV) and market internals (breadth) have yet to confirm this rally, but the money flows and sector rotation suggest increasing inflation – a hyperinflationary model.

S&P 500 ETF (SPY):


NYSE Breadth1:


NYSE Breadth2:


Headline: What Happened to the Rally? Why Markets Are So Worried

Even though investors seem to have gotten everything they've wanted over the past month or so-political changes, Fed help and tax relief-the markets are still full of jitters.

Over the past few trading sessions, bond yields have jumped, commodity prices have slumped and stock prices haven't done much of anything, despite optimism that a tax accord in Washington would be the final push the market would need to close out 2010 on a strong note.

Source: finance.yahoo.com

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