• 722 days Will The ECB Continue To Hike Rates?
  • 722 days Forbes: Aramco Remains Largest Company In The Middle East
  • 724 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,124 days Could Crypto Overtake Traditional Investment?
  • 1,129 days Americans Still Quitting Jobs At Record Pace
  • 1,131 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,134 days Is The Dollar Too Strong?
  • 1,134 days Big Tech Disappoints Investors on Earnings Calls
  • 1,135 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,136 days China Is Quietly Trying To Distance Itself From Russia
  • 1,137 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,141 days Crypto Investors Won Big In 2021
  • 1,141 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,142 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,144 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,145 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,148 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,149 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,149 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,151 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Review, What to Expect...

2/19/2007 12:10:04 PM

Dynamic Trading is switched back into SELL MODE on Friday, after it became clear the Bernanke Bounce had probably run its course.

Last week also brought bad news for housing, with starts sinking 14.3% in January, despite the warm weather - a 10 year low. This all ties in to consumer confidence and consumer spending, which is about 70% of GDP.

Bottom line: The markets are now, again, looking tired and ready to roll over on any negative catalyst.

In the upcoming week, we could see some real pressure on the markets if the Bank of Japan bumps rates or even just talks hawkishly -- as this could pressure many to unwind their "yen-carry trade" positions. The Yen-carry has been fueling much of the global liquidity that has kept this market artificially afloat.

Although the one year chart I've attached of the major indexes still could be interpreted by some as neutral or even mildly bullish, the forces that could pressure a sell-off are mounting behind the scenes.

Note how the simple trend lines, initiated last July, have been breached to the downside ever since November/December, most dramatically in the NASDAQ (magenta line). Momentum has clearly been weakening and we could flip over and move the other direction at any time.

As always, please email me with any questions, suggestions or comments: dynamictrading@stockbarometer.com.

 

Back to homepage

Leave a comment

Leave a comment