Trader’s Narrative

It seems almost surreal but the US equity markets seem to be keying of the Greek debt market. Or perhaps the wider European debt markets and I’m just using the Greek bonds as a proxy. Whatever the case, for some time now, this tell has been giving uncanny signals a few days to a few […]

We’ve already looked at the high correlation within the stock market that has caused most issues to move together as a herd. By now it should also be clear that this correlation is evident even across asset classes, providing a binary market where risk is either on or off.
Below is a grid covering 31 asset […]

One of the easiest and most convincing arguments that one can make right now is that US investors are abandoning stocks and flocking to the perceived safety of bonds. It is easy to point to the fund flows which show week after consecutive week of outflows for US equity mutual funds and gargantuan positive inflows […]

Recenlty Aaron Task interviewed Robert Prechter on the Tech Ticker at Yahoo. They discussed the US dollar, gold and the Euro.
While he is pessimistic on the Euro, Prechter does believe that it will stage an intermediate rally as a response to the current extreme negative sentiment. But Prechter doesn’t think that will be able […]

According to the Bank of America Merrill Lynch survey of managers, institutional investors are reducing their exposure to European equities as a result of the EU sovereign debt crisis. While this has hit the financial sector the hardest, there is an opportunity for savvy, long term investors to scoop up the baby that is thrown […]