Wed Oct 22 2014
Credit Suisse on low oil prices. The phrase I keep seeing int these articles that makes no sense is
when prices rebound. And this comes after the article makes the case for over supply.
Bullish Percent, the Internals of the Market
The internal picture of the market tells a very different picture. The internal strength of the number of stocks over their 50 day MA peaked in May. Price of the index peaked in September. This is due to the weighting of big stocks in the index outperforming the smaller stocks. Remember the RUT peaked months ago that is a small stock index. If we are indeed at a fourth wave momentum peak, this indicator will get turned back at teh 50% level which lies just overhead. NOte RSI at top is also at 50%. Granted it could extend to the downtrend line not shown off the prior two tops, that would be about the 55% level.
30 Year Bond Yield
All the talk of low yields obscures the fact that instead yields are slowly rising. In the panic thsi past week yields stayed above the previous lows of 2012. Janet Yellen, your destiny is calling for the day you find out the market not Janet is in charge.
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