Powered By Blogger

About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Sunday, December 26, 2010

Stock Market -- Caution Light

The bull run in place since late Aug. remains intact. But, it is getting overbought on  an
intermediate term basis against the 13 week m/a and the 12 week RSI. Moreover, it is
extended on the 14 week stochastic momentum measure. SP 500 chart. As well, the CBOE
weekly individual stock put to call ratio is at a low 50.5 average for the past four weeks.
That is not just very bullish sentiment, it is heavy betting on a rising market that is usually not
rewarded at such aggressive levels of short term speculation.

These warnings suggest the market is likely to pull back some over the next 10 trading days
and hardly signal a major turn of events on their own. But the market has put in a solid 17
weeks without major upset and it only seems fitting that it would stiff the optimists at some
point over the next couple of weeks.

1 comment:

ADDX said...

Hey if you are looking for Primary Offerings then here is a good time to invest in ADDX. ADDX is a finance company that provides you a Primary Offerings and other alternative investments. Licensed by the Monetary Authority of Singapore.