Bear Cave 2 (Bull Allowed)

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Wednesday, December 15, 2010
BAD BREADTH

I've noted before that at intermediate turning points we will usually see breadth diverge from price.


I expect by this time Bernanke's insane monetary policy will have spiked inflation high enough to collapse the economy again and the global stock markets will begin the trip down into another devastating bear market.


In 2012 they won't be calling it a Great Recession they will be labeling it by it's true name; The next Great Depression!
http://www.smartmoneytracker.blogspot.com/
 
Wednesday, December 15, 2010

Overbought


The market is now overbought as seen in the chart below. However, the current overbought reading is weaker than the ones we saw earlier in the rally. This points to a loss in momentum, otherwise known as a negative divergence. A strong overbought reading has positive medium term implications as it speaks of a market with a lot of underlying strength.

http://capitalobserver.blogspot.com/2010/12/overbought.html
 
The article offers that rising interest rates will act as a drag on the market. Some smart people on TV (aren't they all?) said they signal the economy is actually healthier than some people might think.
 
Every period in market history is different - sometimes there is correlation between the SPX and interest rates and then there are times when they oppose each other. We'll just have to wait and watch.
 
Is it time for the F Fund?

Robo


How to Trade the Spike in Interest Rates
By Jeff Clark
Thursday, December 16, 2010


All of a sudden, everyone is talking about higher interest rates.

It's the most popular topic on many financial blogs. The talking heads on CNBC have been squawking nonstop about it for the past two days. I even overheard a couple golfers talking about it on the driving range yesterday.

http://www.growthstockwire.com/
 
GUNDLACH: THE USA CAN’T HANDLE RISING INTEREST RATES

15 December 2010 by TPC 19 Comments

Jeff Gundlach, the savvy bond manager at DoubleLine and the only bond manager who consistently outperforms Bill Gross, says the de facto interest rate tightening of the last few weeks is unsustainable. In a conference call with investors yesterday Mr. Gundlach detailed his outlook. Gundlach believes the higher interest rates will weigh on the debt burdened nation:

http://pragcap.com/gundlach-the-usa-cant-handle-rising-interest-rates
 
Confessions of an Insider Trader!

Saturday, December 18, 2010. 1 p.m.

The Justice Department has been criticized for failing to bring charges against individuals at financial firms where questionable (to say the least) activities were uncovered by Congressional and SEC investigations of the financial crisis of 2008.

http://www.streetsmartpost.com/
 
KICKING THE CAN

19 December 2010 by John Mauldin 0 Comments
By John Mauldin

How often did we as young kids go down the street kicking a can? “Kicking the can down the road” is a universally understood metaphor that has come to mean not dealing with the problem but putting a band-aid on it, knowing we will have to deal with something maybe even worse in the future.

http://pragcap.com/kicking-the-can
 
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