Online Stock Trading | NYSE Notches a Distribution Day for my Return from Vacation

NYSE Notches a Distribution Day for my Return from Vacation


Filed Under Market Commentary |

The New York Stock Exchange notched a distribution day the very day I return from vacation. Whether or not this was a “message” from the stock market gods (bulls of course) telling me to stay on vacation, it illustrates how unhealthy this market is. While on vacation, I enjoyed the great views offered up by Central Oregon but the stock market stayed weak. No amount of golf, relaxation, enjoying friends would cure or skew my view of this market. The same all story continues, no fear (VIX/VXN and Put/Call ratio), New Lows continue to pound New Highs, and we are not getting growth stocks that are setting up for massive runs. We certainly are not in a new bull market, patience and prudence are to be exercised in this market.

SSampson pointed out some data to me about Top 1% and their spending. I will post the comment once I have crunched all the numbers. I misrepresented my thoughts and do apologize but I will make a point about the documentation he posted. Just give me some time to put forth some numbers. I just got back from vacation!

I wanted to put forth that front and center. This market is certainly foreshadowing more downside, we now have 2 distribution days on the NYSE indexes. Although Oil is pulling back and the dollar is rallying it appears our global growth story is beginning to crack. Europe and Japan are reporting lower GDP growth and China appears to be slowing down as well. It will not help that the Chinese government shut down Beijing factories since July 20th. Nor does the Shanghai falling some 50% this year, with more downside in sight. What is even more troubling is the idea that Banks still have bad debt on their books. Alt-A type loans, loans where you can choose to pay only some of the interest, no principle but the interest (unpaid portion) is tagged onto the principle. The size of the issue is unknown, but even on a small scale we haven’t priced in these loans being written off and perhaps if its larger than subprime banks stand to lose even more!

Keep those losses small and enjoy!

Market Speculator

No Positions

***UPDATE***

Please read my comments on SSamson’s comment here!  Thank you

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