My thesis is that the markets are over-priced when analyzed from a fundamental, technical, and emotional standpoint. Yesterday I provided a supporting technical chart. Today I share two snippets from the morning's financial news regarding employment - one very fundamental driver of any US recovery:
"The financial health of Americans is crucial to lifting the economy out of recession, as consumer spending accounts for 70% of all U.S. economic activity. That's why unemployment has been such a concern for the market. Higher job losses mean more consumers are left with less to spend."
"Planned layoffs at U.S. companies jumped 25% in July from June, depicting further deterioration in the labor market."
I think the following snippet sums-up the emotional issue:
"bulls have momentum and are focusing on news they like while ignoring or spinning that which they don't."
How do you plan to trade this environment?
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