I saw this picture sometime ago at Minyanville and thought it was hilarious given the current market environment. Fed chief Bernanke made it fairly clear yesterday that interest rates would move lower given that “the economic situation has become distinctly less favorable,” and “the risks to this outlook remain to the downside.” This was an obvious sign for the dollar …
A New Bull Market?
With yesterday’s higher close, our Trend Tracking Indexes (TTIs) are now situated in respect to their long-term trend lines as follows: Domestic TTI: +0.62%International TTI: -4.77% As you can see, yesterday’s market activity pushed the domestic TTI slightly above its trend line. Since our Sell on 1/18/08, we’ve had this very same scenario on several occasions as prices bounced slightly …
Good Bank—Bad Bank
Yesterday’s rally clearly was a follow through from Friday as Wall Street embraced S & P’s affirmation of the AAA rating of bond insurer MBIA—at least for the time being. The main concern has been that any downgrade would force banks and other financial institutions to write off billions of dollars in assets. That means that motivation is high to …
Breaking Out
Yesterday I talked about the fact that the markets are stuck in a sideways pattern, from which they will eventually break out into new territory. That’s a guarantee—the unknown is when the breakout will occur and in which direction. Supporting that view is W.D. Gann, considered by many professionals one of the greatest commodity traders ever. What do commodities and …
Sunday Musings: Seeing Both Sides
Todd Harrison at Minyanville brought up some interesting points in “Strap Yourself in Goose:” My greatest strength is knowing what I don’t know. Stay humble, I’ve learned, or the market will do it for you. What I do know is this: There is a massive disconnect right now between the credit markets and the equity space. If credit can catch …
Current Economic Analysis: Telling It Like It Is
There are a few blogs that are on my daily read list because they offer unbiased advice about a variety of topics related to the economy. In terms of real estate, I enjoy Dr. Housing Bubble while in the finance and global economic events, I favor Mish Shedlocks’s Global Economic Trend Analysis.Dr. Housing Bubble featured an interview with Mish, which …