I do not think so.
I am watching closely the trend of bond yields. Their trend never fails to provide useful information about the stock market. In the near and long term.
On page 5 of The Peter Dag Portfolio I show how lagging indicators (e.g.bond yieds) and leading indicators (e.g. stock market) interact.
A rise in yields raises the cost of money. Investors sell stocks to increase the liquidity they need for their investments. They will continue to sell until yields decline enought to make it more attractive to borrow.
This is the time when they stop selling stocks and the stock market rallies.
What I am saying is that you need to see a convincing decline in bond yields before you can look for a market bottom.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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