Sunday, May 25, 2014

Recent Changes At The Margin Suggest Bulls May Be Gaining Ground | Seeking Alpha

Recent Changes At The Margin Suggest Bulls May Be Gaining Ground | Seeking Alpha



This is a very good article comparing investing to playing poker. When stock market signals are conflicting, this corresponds to a weak poker hand.  You should be cautious in this case.  The author presented several outstanding indicators which tell whether or not a bear market is about to start.  He mentions Philly Fed and Chicago Fed statistics which show that we are not in economic trouble.  The TED spread was also discussed, and we are okay there.  The YEN carry trade going down was one of the few strong cards for the bears. Margin levels going down was another strong card for the bears.  The bulls have a slight edge for now, but we still need to be cautious in the stock market.


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