Friday, October 21, 2011

Morning Market

The markets are still in a holding pattern as evidenced by the charts below:

Equities, bonds and the dollar are all in a tight range.  That, of course, leads to a very important question: why?  What does a holding pattern mean?  The smart-ass answer is "there are an equal number of buyers and sellers."  But, there is, in fact, a deeper reason: the absence of strong sentiment in either direction.  There is almost a perfect balance between good and bad sentiment, meaning traders are waiting for ... something.