Buzz on the Street: All News Is Good News for This Market
A look back at the happenings on Wall Street this week, as seen by Minyanville's Buzz & Banter.
As if out of nowhere, the phrase "income inequality" now seems to be everywhere.
Below is a chart I showed clients last week that highlights how "income inequality" correlates to economic confidence.
Not since the weak economic confidence days of Occupy Wall Street have we seen such a strong surge in "income inequality." As someone who studies the correlations of human behavior with confidence, the connection is not at all surprising. As confidence falls, perceived inequities of all kinds come the surface.
I would be careful to assume, though, that this is just a passing phase. Given that it has been an additional two years of weak confidence since we last saw this phenomenon, we could easily see a movement far more significant than Occupy Wall Street, particularly if mood falls sharply.
While I don't wish for it, given the clear breakdown in correlation between investor confidence and American economic confidence, something akin to Occupy Capitalism would not be at all surprising to me at this point.
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APA Accelerates From a Big-Base Formation
I entered a 100%-long position in Apache (NYSE:APA) this morning at 91.33 into strength in the aftermath of yesterday's key-upside reversal day, 88.84-90.89, which triggered new-buy signals in my intermediate-term pattern work.
You can see on the daily chart that APA is starting to accelerate to the upside from a near 2-year base formation, which projects next to 94.00 and to 98.00, thereafter, possibly on the way to 105-110 several months from now.
Only a sudden-downside reversal that breaks and closes beneath 88.85 will compromise my currently constructive outlook.
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