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Markets – Macro – Stocks – Charts – Alerts

Pedal to the Metal

pedalIt’s a big POMO day, it’s Tuesday and markets are hitting new records again. Well duh! Janet Yellen’s bubble free quest is making mockery of sensibility, but here we are with RSI readings going full pedal to the metal. RSI reading of almost 81. The history is quite clear here. RSI readings of this magnitude have resulted in corrections even in this non stop bull market:

$QQQ

If Janet Yellen has any sense in her she’ll try to cool this market just a tad or she will likely have to contend with something much more significant than a mere correction. And remember some bubbles have a way of blowing up in your face:

bubble face

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1 Response »

  1. Is it Janet yellen or the fact that when there is turmoil in the rest of the world, which was the case with Ukraine, Russia, Iraq, hong Kong recently, Brazil, etc, those local capital markets experience capital flight to the perceived safety..safety in US and developed markets…It’s going to be quite some time before the rest of the world solves their regional conflicts. Japan is another example of flight of local markets….

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