This is the synopsis of all chain of events in Middle East.. A Great read if you are not tracking the Middle East turmoil day by day
http://edition.cnn.com/2011/WORLD/africa/03/04/middle.east.africa.unrest/
Market Momentum
I have been watching the Market in past 30 sessions since the beginning of the Middle East Crisis. This is what i see
1, The Oil Price has been extremely Volatile
2, Around 25% of Global oil Supply is at Stake during the Crisis.
3, No visible Leadership from U.N or any of the Superpowers (Existing and Emerging)
4, Market pricing in a $125/ barrel Crude oil price.
5, Gold is Surging towards $1600 /ounce with Hedge Investor buying spree.
6, U.S and EU on the sidelines due to the Economic and Fiscal Deficit dictating their Global and Economic policies.
Lets watch the Market momentum for past week.
http://edition.cnn.com/2011/WORLD/africa/03/04/middle.east.africa.unrest/
Market Momentum
I have been watching the Market in past 30 sessions since the beginning of the Middle East Crisis. This is what i see
1, The Oil Price has been extremely Volatile
2, Around 25% of Global oil Supply is at Stake during the Crisis.
3, No visible Leadership from U.N or any of the Superpowers (Existing and Emerging)
4, Market pricing in a $125/ barrel Crude oil price.
5, Gold is Surging towards $1600 /ounce with Hedge Investor buying spree.
6, U.S and EU on the sidelines due to the Economic and Fiscal Deficit dictating their Global and Economic policies.
Lets watch the Market momentum for past week.
| Market Momentum | Advances | Unchs | Declines | 20-Day MA | 50-Day MA | 100-Day MA | 150-Day MA | 200-Day MA | |
| Today | -0.78% | 920 | 108 | 3142 | 50.53% | 59.59% | 70.74% | 79.73% | 81.22% |
| Yesterday | +1.94% | 3400 | 79 | 691 | 61.58% | 65.01% | 74.72% | 81.31% | 82.59% |
| Last Week | +1.83% | 3537 | 73 | 559 | 58.07% | 62.70% | 73.92% | 81.14% | 81.96% |
| Last Month | +0.30% | 2164 | 122 | 1883 | 57.81% | 65.99% | 77.40% | 82.77% | 81.12% |
Lets see how many Distribution days we had in past 30 sessions
Seems like we had 4 sessions of Heavy selling and not even one Session of heavier buying..
This shows couple of Red flags
1, The Market is definitely in a negative Trend.
2, Institutional Investors who create heavy volume is on the Sidelines.
3, End of Earnings season.
4, Arrival of Summer Driving season which naturally boosts Gasoline prices.
5, High $3+ Gasoline prices for past 4 months cutting into Consumer spending.
Looking at all of the above and possibility of IRAN revolution happening anytime which happens to be the Top Oil producer in the region after Saudi . We have one Toxic Brew of bad news to kill the World Economic Growth .
If Stock market is look ahead for 9 months of Economic conditions , the sell of will not stop until we see a 10% drop in coming months.
I would suggest to Exit out of High Flying /High Beta stocks and head to Dividend paying and conservative Bonds...
As Always Cash is the King
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