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Tuesday, September 28, 2010

It's clear-cut the market is being propped up by some "greater force." The financial sector is not in agreement with the direction of the market. JPM, MS, GS continue to decline despite the fact that the DOW continued to grind toward 10,900.

This is a huge red flag. Because one, you can't have a recovery without the financial sector and two, the economy must be really bad if a "greater force" has to manipulate the stock market.

The dollar is declining which is hinting the government is spending more and more, I assume, taking that money to flood liquidity into the market. Oil can't catch a bid which shows there is no demand for it. And the smart money is going into treasuries.

The health of the economy will show itself again. No matter how much the Fed decides to intervene.

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