Trader’s Narrative

While everyone in the US was gathered around the dinner table with family and friends, getting ready to loosen the belt to officially start Thanksgiving, Dubai World released a short, terse statement requesting a debt moratorium of 6 months. This not only sent ripples throughout the global financial system, but it immediately caused their debt […]

A parabolic move is defined by an accelerating rise in price over shorter time periods, culminating in a rise that is almost vertical in slope. As you can see in the charts below, each successive trend line is steeper and steeper. But while it is easy to identify this pattern in its mature state, it […]

For economic and market news and to see what interesting reading you may have missed last week, check out the list below. To see it all, go to news.tradersnarrative.com:

Before Facebook - An Old School Social Network
China’s booming car sales, falling gas usage stump analysts
Taxing the Speculators
Identifying Turning Points Using Fibonacci
Dutch Supreme Court: Goldman, ABN Misled […]

Here is this week’s summary of sentiment data:
Sentiment Surveys
The AAII’s bears fell slightly and bears rose by 10% points, so each camp reached exactly 42%. Surprisingly, including this instance, the AAII weekly survey has spent 39 weeks at parity - that’s 3.3% of the time, since the survey was started in 1987. Here is an […]

Yesterday I wrote about the deterioration in market leadership and how this is the first stage of a top. If you missed that, go read it now as the following will make more sense.
As less and less individual stocks power the market upwards, the responsibility is shouldered by fewer and fewer stocks until they too […]