Thursday, November 18, 2010

Uh-oh

Municipal bond prices have been plummeting for the past couple of weeks.


Municipal bonds are the vehicles that states, counties and cities use to borrow money. When bond prices fall, it becomes more expensive for local governments to raise cash because they have to sell more bonds (and promise bigger future payments) to borrow the same fixed amount of money.

Friday, November 12, 2010

Market update: optimism threatens the rally

Stock market sentiment is almost as optimistic as it was in late April of this year, meaning the current rally is nearly out of steam. Even if the market doesn't fall from here, it will probably have to at least stall for a while to let sentiment return to more neutral levels.


Thursday, November 11, 2010

November 11

Thank you, and Happy Veterans Day to all defenders of freedom out there.

Friday, November 05, 2010

Double Breakout

The S&P 500 index continues to defy most of my short-term predictions, and has actually accelerated above the rising tops trend line that's been in place since August. At the same time it's passed above the 1217 closing price peak of last April.


These are both bullish signals.