http://headlinecharts.blog.com/
With $6 to $8T in global securitized residential mortgages out there somewhere(?) getting ready to reset from bending to breaking the homeowners/speculators (according to Stephanie Pomboy of Market Maven), and the Dollar index breaking below $80, it's no wonder that gold broke $700. Last January Louise Yamada audaciously called for $1000 gold - we may see it yet.
On top of that, Barron's notes that the mortgage rates are tied to the LIBOR rate, which has been rising due to fear.
Despite Friday's dramatic sellof and today's followthrough, not much in the way of indicators is in extremis. Both the ISE call to put ratio and the Market Vane bulls rose materially, and Tom McClellan thinks the breadth washout is setting up for a late Sept. rally. The AAII is still nicely inverted, but I would still hedge any equity investment for the next few weeks. I wonder what effect the Specialists' upcoming disappearance will have on stocks - I'm sure they'll be grabbing all they can as they circle the drain!
Here are the stats:
Mktsentiment. 9/7/2007 Last Week..... .5Yr.HI...... LOW
DJIA ………. 13113……….13357………13668..............7286
Nasdaq………. 2565…………2596……….. 2707.............1114
S&P500…….. 1453…………1474……….. 1557……..776
CBOE Eq. put/call …69…………..71………… 91…..........46-1/03
VIX ………. 26.2…………23.4………44 9/02........10.0-7/05
ISEE-call/put ……. 177…………..135………..177………..133
All Equities (ETF)
McClel Osc…………21……………..63………91-5/04.........(81)-5/04
McClelSum………-370………………-569…………..1568-6/03.......(917)
Newsletter Surveys:
Inv.Intel -Bull:…..…. 42.9………….41.7………..62.9-12/04......35-6/06
Bear:………… 37.4………….37.4………… 38.2-3/03.......16-6/03
AAII-Bull/Bear ……38.4/42.4……..40.3/46.3……..n/a n/a
MarketVane Bulls…. 59…………….53…………. ………74..............24
UBS investor confidence..73………..87……………178……………53
IBD: Short Interest- …7.0…………….6.42………8.25………. 4.0
Public/NYSE Spec.-…..12.9…………10.3……18.25……….1.0
Birinyi Blogger
Bull/Bear Poll ……31.3/40.6………..27.2/36.3
Bullish%- ………...52……………49……….…88 -2/04...... 46-8/04
*Insider corporate sellers..30:1……..10.2:1
Sectors: Most Buyers: Finance/Tech
Most Sellers: Tech, Healthcare
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