- China was down again last night – how long can the divergence between China and U.S. stock continue before one makes a huge move either up or down?
- The S&P is well off its intra-day highs. Are we beginning to see the first signs of selling the news?
- Volume is better today and breadth is 2:1 – that’s gotta make the bulls feel pretty good.
- Dr. Copper is getting his head handed to him today. (-2.5%)
- Oil is getting his head and his feet handed to him. (-3.5%)
- I’m not the only person who doesn’t believe in the most recent rally.
- Reader Henry has the market cheat sheet:
* weak data = Fed ease, stocks rally
* consensus data = lower volatility, stocks rally
* strong data = economy strengthening, stocks rally
* bank loses $4bln = bad news out of the way, stocks rally
* oil spikes = great for energy companies, stocks rally
* oil drops = great for the consumer, stocks rally
* dollar plunges = great for multinationals, stocks rally
* dollar spikes = lowers inflation, stocks rally
* inflation spikes = will inflate all assets, stocks rally
* inflation drops = improves earnings quality, stocks rally
- Reader Dean points out Dr. Bernanke’s many great successes:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.