Monday Nov 26 2013
An alert reader sends this comment from Comstock Partners which perfectly reflects my view. Indeed in the last couple of paragraphs Comstock notes the weak internals I showed this weekend. The internals peaked back in April when we thought a significant top had occurred. it did but in the number of new highs. The decreasing participation but with continued QE has resulted in higher overall indexes. This is the classic way markets top with lower breadth of participation. No one at the time referred to the 1973-74 collapse as a bubble but it did collapse from 1000+ to 577 in two years. Trust me on this, the social mood now is the same as it was then. Mid east woes, endless war, domestic problems abound and an increasingly unpopular President out of tune with the country., 40 years ago, same as today.
It's world wide, two thirds of France is pessimistic.
Bullish Percent
This shows that overall participation in the rally has dminished since our incorrect call, along with others. for a market top last April. The QE money has kept the markets up since then but with reduced breadth.
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