NYHL New Highs-New Lows Daily Chart
As the broad market prints new highs week after week this year the NYHL continues to diverge, printing consistently less new highs week after week. In a healthy long-term market, the red arrow should be pointing up with more new highs printing as the broad indexes print new highs. More proof of the Fed-induced rally. The fundamentals do not matter anymore, the Fed and BOJ want to pump the markets as high as possible creating the 'wealth effect'. The idea is that once folks see their investments growing and the markets up week after week, they will spend more money, buying new cars, houses, clothes, going out to dinner, etc.., and this action will create a virtual cycle where companies will hire more workers to handle the increased demand. Sound hokey? Well if it does, take it up with Chairman Bernanke (FOMC) and Governor Kuroda (BOJ); this is the ongoing plan. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
many american's 401k's -like mine- are locked and i can't touch a dollar till i retire... what point is there to spend more then??? most american's 401k -like mine- has finally gotten back to where it was 6yrs ago (excl. continued investments of course..), so what point is there to start spending all of a sudden?
ReplyDeletethe fed's reasoning is flawed from the very fundamental economic principle that higher market prices cause higher societal prices. with wages below where they were 10yrs ago, no american has any spending power, except the 1%...
ben is crazy.
Remember that 90%.....of the 1%.......are the folks that own the fed, that own the media, the same tribe that owns Hollywood.....get it?
ReplyDeleteAlso of interest is the BOJ easing. Japan is an aging society, as the U.S. will be in the coming years, and their funds are in safe instruments. The BOJ, like the Fed, is trying to force people to take risk and move into stocks. That will be a difficult task for Japan.
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