I like to watch the high-yield market to tell me if there is enough liquidity in the system.
Although I am predicting a period of pause in the equity markets, high-yield bonds are saying there is plenty of liquidity.
This is good news for stocks.
More on The Peter Dag Portfolio at www.peterdag.com.
George Dagnino
aka Peter Dag
www.peterdag.com
1 comment:
George- Interesting tell. If credit spreads widen, it will get interesting. What do you think of John Hussman's latest piece/analysis?
Leisa- No return date from woodshed scheduled.
I am monitoring Market Breadth for signs of deterioration. So far the number of new lows is holding up. Until that starts increasing, no selloff in sight. Just more chopping back and forth. Percentage of stocks over 50dma says top is in but as George says, this could just go sideways and work off the overbought conditions. Its been doing it since November.
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