The odd-lot shorts, the VIX and the put/call ratio suggest that aggressive invesotrs could add to positions. Twenty-nine decliners in the Dow 30 underscore their decision.
The inverted yield curve from 1-12 months may keep conservatives out of the market. My local banker said that their CD curve is negative because they expect rates to decline. They probably expect the GDP to slow as well.
2 comments:
With all this market turmoil it's hard to stay long. It pays to keep strong hedges in place.
I keep thinking that the credit market turmoil is going to spill over into the yield curves/credit spreads and signal a sell in the next 6 months or so.
Inflation is getting out of ctrl, and looks like more severe stagflation is on the way.
You make some excellent points! Deborah
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