We broke through a critical level during the last two trading sessions.
1380 on the Dow.
The "fat finger trade" is now the next level to be tested in my view.
If it is broken - then look out below, as tomorrow is options expiry Friday.
Consider the following graph courtesy of Stockcharts.com:
Richard Russell has made a good call on this, in my view.
Stocks are looking increasingly toxic as earnings begin to stagnate at high P/E levels.
A retest of March lows is becoming possible, as the sovereign contagion spreads in Europe thanks to Keynesian madness.
1380 on the Dow.
The "fat finger trade" is now the next level to be tested in my view.
If it is broken - then look out below, as tomorrow is options expiry Friday.
Consider the following graph courtesy of Stockcharts.com:
Richard Russell has made a good call on this, in my view.
Stocks are looking increasingly toxic as earnings begin to stagnate at high P/E levels.
A retest of March lows is becoming possible, as the sovereign contagion spreads in Europe thanks to Keynesian madness.
Finally after all these months of repeating over and over you are right for once (or twice) like the broken clock :-)
ReplyDeleteYes Anonymous, I'm afraid I do sound like a broken record at times. My hope is the fiscal policy decision makers will learn from their past errors and stop spreading the contagion.
ReplyDelete