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Eye of The Storm

Friday, August 12, 2011, 10:14 AM
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If the behavior in the financial markets have not scared off all of the average, normal investors, it’s only because some of them have not been paying close enough attention or have failed to appreciate what they were seeing.

These are markets without a clue, forced into unnatural positions by too much thin-air money for so long that all sense of equilibrium has been lost. Tottering about, seeking the occasional nearby lamp-post, the stock markets are close to setting records for consecutive high-percentage whipsaws.

Even with Thursday’s 400+ point gain in the Dow, allegedly on the basis of improving initial claims statistics (yeah, right), we saw poor market internals such as only five new highs in the NYSE along with 121 new lows. Reverse those numbers and we’re in business for a rally, but instead, with the data we're seeing, it’s not terribly likely that we’re ready to trot off into a new future of rising markets and economic growth.

 

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