Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Here is one of the indicators I spoke of this morning – it was 85 coming into the day (the chart does not update intraday) which is a very rare level over the past 3 years. If today’s ramp holds into the close it would not be surprising to see a reading near 100. That has only happened once in 3 years, late July 2010. It happened a few times in late 08, early 09 as well – once even well over 100. But it’s rare.
Looks like everyone is anticipating not only a 25 basis point ECB cut but some goodies now that they have said they wanted the fiscal authorities to act first. Again we need not see a big selloff, but usually when you reach these sort of levels you digest for a few sessions.
Disclosure Notice
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
