No. of Recommendations: 17
I don't have time to write much about the Control Panel today. (Preparing for Shabbos during short winter Fridays is hectic.)

I am posting because qazulight said "oversold."

Far be it from me to contradict any METAR ;-), but the Control Panel is breaking down across the board into a serious risk-off trade. Stocks and stock sentiment indicators are falling. Treasury yields are dropping and the dollar is rising. Gold is holding steady, but the ratio of the SPX:gold is falling. Commodities are falling. The high-yield bond index is falling.

Even the German stock index (DAX) is in a falling trend, though more gradual than the SPX. Spanish 10-year bond yields are gradually rising, though not in the danger zone yet.

Industrial Production Declines
New York Times, November 16, 2012

WASHINGTON — Hurricane Sandy depressed industrial output in the United States in October, while production of machinery and equipment in particular declined sharply, reflecting a more cautious outlook among businesses, the Federal Reserve said Friday. ...

Manufacturing has weakened since spring, in part because companies have scaled back purchases of long-lasting goods that signal investment plans. That trend appeared to continue in October...

Hurricane Sandy also hurt the economy, although most economists expect the storm’s impact to fade in the coming weeks. ...
[end quote]

The Fear and Greed Index has just dropped slightly into "Extreme Fear."

I'm a contrarian like qaz, but I see the current Control Panel as a falling knife that still has a way to fall. Is it "oversold?" Sure, if Congress avoids the fiscal cliff and if the economy improves. Those are big "ifs."

Wendy (see data below)$INDU,$S...$IRX,$US...$STOX5E,...
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.