As the 12 month chart below reveals, there have been several strong moves off of oversold conditions. Other than the oversold bounce post Katrina, the chatter around each upwards move has involved the expectation that the Fed is (almost) done.
What happens as the market comes to realize the Fed may not be so close to finishing?
Stay tuned . . .
Quote of the Day
“Ignorance is not knowing something; Stupidity is not admitting your ignorance.”
Small World: On Saturday, I mentioned problems with Citibank’s Panic/Euphoria sentiment measure. Then, I discussed the work of James Montier of Dresdner Kleinwort Wasserstein (DrKW) yesterday, (Seven Sins of Fund Management). This was the first time I ever mentioned him. By coincidence, I read about a Fear/Greed indicator last night from the very same James…Read More