Stock Market Analysis

Monday, September 22, 2008

Papa and Mama Continues To Argue...

Papa and Mama continue to argue but this time, something changed... Mama obviously thinks its a great idea to go to the beach but wants credit for it as well! So the argument continues to the eagerness of the little beach going kids. In fact, kids from other neighbourhoods also joined in the wait to the beach. Bond traders have exited the bond market big time over the past 2 days resulting in a huge surge in bond yields across the board (see bond yield curve). This may be the biggest financial disaster in history but its effects on the stock market isn't all that historical, thanks to the greater market efficiency brought about by the internet. Until Papa and Mama come to an agreement, the Dow continues to be in a primary bear trend and a short term neutral trend.

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