Daily Investment Interpretations
September 26, 2010
2010-9-26 (Sunday Night): Market
futures are up more than 2% tonight: Stocks riding on flood of
liquidity: Risk back on, and After soft patch, economy still stuck in rut.
In the first article, Marketwatch's markets editor, Nick Godt, points out that
the market isn't climbing on expected improvements in the economy, but rather,
on a global economy that's performing poorly enough that the world's central
banks will flood the system with more money... which, he says, is why gold is
climbing the way it is.
My investment advisory service is reporting excessive enthusiasm and an overbought condition, and has pulled back from cautious buying to a HOLD, with the possibility of a "sell" signal at hand(!)
This is very tricky. The market seems to be climbing a wall of worry. There's general agreement that it has broken upward out of its trading range. Is this the usual "wall of worry"?