Tuesday Outlook: New World Order?

Has the structure of our financial and investment system changed? We have more activist central banks globally; bank bailouts; trillions now in non-transparent SWFs; blurred distinctions between investment banks and banks; Wall Street trading desk profits exceeding all other corporate enterprises; hedge funds a plenty; potential for some emerging market decoupling from major economies and so forth.

On Monday, I noted the story from Asia indicating that the Chinese government would allow mainland investors to buy US stocks in the near future. This could be another powerful force with an impact hard to imagine currently. The existing bullish bias has gotten a steroid injection.

Meanwhile, back at the ranch, trading volume remains light and breadth is unimpressive.

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Comments

[puttster]

I enjoy reading the notes but would enjoy it more if I could find out what the drawn blue and red lines represented.

[User 141585]

I enjoy reading your comments as I listen to the prognostications of cable t.v. money managers.

If the Chinese govt allows its citizens to buy U.S. stocks, does that mean they'll also be able to short U.S. stocks ?

[Indexor]

Dave:

Always enjoy your posts - both charts as well as commentary.

[David Fry]

Thanks.

The blue lines are resistance and red is "must hold"...all in my humble opinion.