Info!! Hints Of Peril Appetite Inwards The Stock Market

As 2008 came to a close, many of the headlines recapped how bad a twelvemonth it was for the stock market. Several marketplace indicators, however, were showing interesting improvement. At Wednesday's close, nosotros had 256 NYSE, ASE, as well as NASDAQ stocks registering fresh 65-day highs against 144 lows, the strongest reading since September. On a shorter-term trending basis, nosotros had four stocks from my handbasket inward uptrends, xi neutral, as well as 25 inward downtrends at Monday's close. By Midweek that had improved to 25 stocks inward uptrends, vi neutral, as well as nine inward downtrends.

When reviewing information from the Decision Point site, I was especially interested to encounter that the advance-decline business specific to midcap stocks (top chart) had bested its Nov peak, moving to a multi-month high. We're too seeing an increasing proportion of stocks--nearly one-half across the NYSE--trading higher upwards their 50-day moving averages (bottom chart).

The depression 900 expanse remains of import resistance for the S&P 500 Index, simply minor cap as well as midcap stocks are already breaching their equivalent levels to the upside. That suggests a well for you lot grade of risk appetite with equity investors. That same appetite has been driving prices upwards for intermediate-term corporate as well as municipal bonds, every bit investors seek greater returns inward a naught involvement charge per unit of measurement world. With a weak USA dollar as well as continued overseas conflict, we're too starting to encounter increasing signs of life inward the commodity markets. Short-term Treasury prices, meanwhile, are hovering close several-week lows.

I volition survive next these themes closely every bit nosotros showtime the New Year, because they volition give us of import clues every bit to whether deflation themes volition morph into inflationary ones inward the wake of unprecedented financial as well as monetary stimulus. Should that occur, nosotros could encounter quite a shift out of security assets (Treasuries) as well as into riskier ones (stocks, bonds, commodities).
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