With the internals of the market looking so healthy, youmay be wondering what might derail the rally. Technimental’s Chief Market Strategist Kevin Lane noted a “nagging concern as the year wound down that speculative trading activity had crept into the market.”

10 Day Moving Average Equity Put/Call Ratio

click for larger chart

2005_10_day_ma_put_call_ratio

Source:  Redwood Technimentals

Lane notes “Typically speculation rears its head just before good corrections. The hard part with speculation is it can run its course for a while before it gets over-exuberant. What this tells us is that although the trend is still up we need to pay closer attention to tape activity for signs that sentiment and speculation are leading investors to move out of the market.”

.

Random Items:

U.S. Economy Expected To Perform Well in 2005

’Fortunes 10 Tech Trends to Watch in 2005 (See also Business 2.0) 

The year according to eBay

A Rally for the Buck?

What Killed Off The GOP Deficit Hawks? 

Google’s Year End Zeitgeist

.

Quote of the Day:

“The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes.”   -William James (1842-1910)

Category: Economy, Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.