Posts Tagged ‘Nasdaq 100’

Notes From Underground: Friday’s Unemployment, Or, Our Own Version of Operation Twist

November 1, 2012

Ah, the November 1 and the equity market regained its footing from yesterday’s post-Sandy house cleaning. The NASDAQ 100 recovered to close back above the midweek break below the 200-day moving average (2659) and closed in full rally mode. Supporting the NASDAQ action was the S&P/U.S. BOND RATIO, which gives a picture of interest rates to equity prices, also tested its key moving average and held after a short breach. It is amazing how many markets have reverted back to the 200-day m.a. in the last two weeks, which is a sign of health for the market as so many different trading instruments have been technically overextended–reversion to some established mean is a sign of health. Now that so many variables have reverted the market is set up to reveal some coming story. I am not sure of the tale but it is a signal to be alert for some approaching volatile price action.


Notes From Underground: The Markets Are Wrong (Or Draghi Lets Us Know Who Is In Charge)

October 25, 2012

Following up last night’s post, Arthur left a note on the blog linking an article from Bloomberg Businessweek, written by Brendan Greeley. The language of the article is crystal clear and provides another example of a Euro policy maker claiming far more insight than the collective wisdom of Mr. Market. “Investors ,he told the Bundestag, are ‘charging interest rates to countries they perceived to be the most vulnerable that [go] beyond levels warranted by economic fundamentals and justified risk premia. This fear is “unfounded. The market is wrong.'”