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Stocks - The speed and violence of last week's decline caused the S&P 500 (SPX) to reach a rare level of near-term oversold without doing any real damage to the trend higher. If the equity market is going to bounce (even if temporary), it should do so from near current levels. The strength of the bounce will be key in determining the next more significant direction of equities.




Volatility - The Volatility Index has bounced back to prior resistance and has reached into extreme overbought territory from which prior equity market bounces have emerged.




Bonds - The yield on the 10-year note has surprised many by declining to 4%. This should help give equities a bid as speculation of asset allocation switches emerge.




Currency - The U.S. Dollar Index has reached into extreme oversold territory and appears poised to bounce. There is a possible positive divergence setting up because the current oversold level was reached without the price making a new low. If there is a turn coming, it will be evident over coming sessions.




Oil - Despite the media focus on the OPEC production cut and the resulting price jump, the spike did nothing to change the recent downtrend. It is important to remember that OPEC cut production because of concerns of oversupply in the market.


No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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