For the second time in about a month or so, the market has confounded me. On Monday a a big drop in the Chinese market led me to believe a sell-off was here. Considering the market is pretty overbought right now and the overall position of the technical indicators this made a great deal of sense. In addition, the Treasury market was at important technical levels indicating conservative plays were back in fashion.
Then the market started to rally. And it still is. However, notice that the MACD is still moving lower and has given a sell signal. Also note the RSI is moving lower. Both of those indicate the market is weakening.
Now -- will it make another move lower? Who knows at this point.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.