A red flag?

It is kind of a natural phenomena, isn't it?

That is ... when the market moves higher and higher, stocks make new highs, and more new highs, and then ... more new highs.

What if that wasn't happening?

Well, new highs continue on up higher because investors are chasing particular stocks. If investors aren't chasing stocks, then that says there is a reluctance about the perceived future of the stock(s) being considered.


So, if New Highs weren't moving higher and higher, then that would be a "red flag" that something wasn't quite right.

Today's New Highs chart is below, and it is showing some pretty poor action. Normally, the blue bars continue up, higher and higher in an up trend signifying that stocks are being chased by investors ... and that is a good sign.

However, the current action (seen inside the black box) shows a stalling action which is a reluctance for investors to blindly pay a higher premium. The only reason you would NOT pay a higher premium than the most recent price, is that you don't believe the stock is going higher, or that it won't go high enough to make the risk of purchasing worthwhile.

So, the action on the New Highs is saying that investors are hesitant in believing that stocks will continue to move higher. Until, and unless this changes, this will remain a red flag.


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Arch Crawford on Goldseek radio Sep. 10, 2010

John Williams Sees The Onset Of Hyperinflation In As Little As 6 To 9 Months As Fed "Tap Dances On A Land Mine"

John Williams, arguably one of the best trackers of real, unmanipulated government data via his Shadow Stats blog, has just released a note to clients in which he warns that hyperinflation may hit as soon as 6 to 9 months from today. With so many established economists and pundits seeing nothing but deflation as far as the eye can see, and the Fed doing all in its power to halt the deleveraging cycle, both in the open and shadow economies, what is Williams' argument? Read on. Incidentally, even if some fellow bloggers disagree with Mr. Williams' assesment, we believe it is in our readers' best interest to have them make up their own mind on this most critical economic development.

Hyperinflation Special Report

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“Greece as a viable economy is finished” – Max Keiser/Helen Skopis

Overdose: The Next Financial Crisis

Calendar

Freedom Watch - Freedom Fighters

二次探底"，你为何感觉不到？

Is this where the Bond Market gets into trouble?

Bonds prices up, bond yields down. Bonds prices down, bond yields up.

This is an important day for watching bond yields, because the odds are now starting to increase for an upside move on bond yields ... and that would mean down movement on bond prices.

At the close yesterday, 30 year bond yields had closed at 38.45 which was a level that was testing an April/September resistance line.

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