Courtesy of Global Macro Monitor and posted with permission:
Stunning price action during these low volume dog days of August. The market keeps marching higher and just won’t go do down to allow the under invested an opportunity to get long. Ugh! The summer night sweats of a money manager short his/her index!
Only 7 points to a new post crash high, which may or may not act as a bit of short-term resistance. Note the 50-day SMA (simple moving average) is ready to cross over the 100-day and the bond sell-off, reflecting the flight from the flight to quality and fear trade, is confirming the rally in big cap stocks.
The 20-year TBond Ishares (TLT) bounced off its 200-day today, but is down 8.5 percent since July 25th. What’s that about 3 years of yield or coupon? Markets move fast, are merciless, and love to humble the certain and proud, mon ami!
Just one more thing. Everyone, and we meeeeeeean everyone, wants to sell this market. And you know what that means.
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