The market is short-term bullish given that ultra-short-term indicators just hit climactic readings as price is starting to come out of a bottom, and there was the execution of the bullish double-bottom pattern. The apple cart could be upset if the Fed announces tapering or ending its bond buying program tomorrow after its meeting.
The S&P 500 closed up 0.78% and the Dow was higher by 0.91%. Higher beta stocks outperformed safety and the advance was broad based today. The most frequently cited “reason” for the advance was that the Fed Chairman was going to not be hawkish regarding QE tomorrow.
Away from Europe the US continues slowly to adjust but I worry that this adjustment will be derailed by a weaker external sector.
Last week Detroit outlined its plan for necessary financial restructuring in bankruptcy. The emergency management team reviewed the cities public pension plans...
In this third part, we look at how credit comes into existence (via arbitrage, of course) with legitimate entrepreneur borrowers.