A Pretty Healthy Rally…….notice of upgraded RSS Feed
But does it change anything? Â The same trading postures that got the market in trouble over the last six years came back with a vengeance yesterday. Does it change the markets internals or fundamentals? In a word no. Rallys like this reinforce further downside selling into the first downside support of 1120 on the S&P, probably over a very short time frame.
7:27 AM CDT
Also I would like to point out that the indicator of long-term versus short-term investor activityÂ continues to show long-term investors as selling rallies and the average S&P rally price since this divergence started on 6/26/08 is 1272.Â
Â Yesterday I took the time to talk to people in the trucking industry. One point that I found of interest was the fact that there is a big build in inventory of used semi-tractors as unprofitable operating numbers are forcing sale, problem is, the trucks are not selling and the sellers refuse to sell the trucks at a discount to the old book value, kind of like housing, prices hold at unsustainable levels while builders continue to build.Â These problems illustrate the long-term nature of the issues we all confront.
A note from the webmaster:Â This is the new RSS feed:
People should be able to get this new one by clicking on the orange RSS button at the top right of the blog, which I have updated to reflect the feedburner changes.Â
7:59 AM CDT