A surprise “no-QE” move by the European Central Bank on Thursday has
stocks rolling lower in a way that hasn’t been seen since October. This
comes just after the end of the most consistent run of the
S&P 500 above its five-day moving average (29 days) amid a push in measures of investor sentiment and positioning to bullish extremes.
Sure, December is seasonality the strongest month of the year for
stocks. And sure, the Bank of Japan and the People’s Bank of China have
all recently unleashed monetary policy stimulus. And all the while,
investors have been operating under the assumption that as long as the
cheap money is flowing from somewhere, stocks will only go up. But
bigger catalysts threaten future gains.
For one, the European Central Bank, which has been promising
government bond purchases for years, is legally prohibited from doing
so. Two, a tightening of the job market will keep pressure on the
Federal Reserve to start its rate hike campaign in the first half of
2015. Three, we are on the cusp of another budget battle in Washington.
(more)
Please share this article
.jpg)
Stocks of all the big brands are in trouble… this is something interesting, lets see how will these name be secure from this red alert.
ReplyDelete